Saudi Aramco raises oil prices into Asia in biggest hike for more than a year
Saudi Aramco, the Saudi Arabian state-owned oil company, is hiking oil prices into Asia in the biggest rise for over a year.
Aramco, which recently announced that a five per cent listing of its shares later this year would value it at around $2 trillion, said today it will raise its official selling price for benchmark Arab Light crude by $1.10 to customers in Asia.
Asia sucks up more than half of Saudi Arabia's oil exports and the price hike has been taken as a sign demand in the region is beginning to pick up.
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The news has given a boost to the oil price which is already climbing due to the production troubles in Libya and Canada.
Wildfires have forced some Canadian producers to curtail output amid widespread evacuations. In Libya, fighting has played havoc with recent oil shipments.
US benchmark West Texas Intermediate climbed three per cent to $45.12 a barrel, adding to gains made yesterday.
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International benchmark Brent crude added 2.6 per cent to $45.75 a barrel.
Oil prices are still down more than 60 per cent from their peak of $115 per barrel in mid-2014 due to massive oversupply in the market.
Saudi Arabia led oil cartel Opec has refused to cut production to support more expensive producers in the US and Russia.