Saudi Arabia will raise its official selling price for all grades of crude in Asia

Six refining sources told Reuters in an investigation on Monday that strong Asian refining profits could prompt Saudi Arabia to raise the official selling price
of all grades of crude it will sell in major Asian markets in July, according to Oil Price Network on May 30.

Oil giant Saudi Aramco, the world's largest crude exporter, usually sets pricing trends for other major Middle Eastern producers and sets the next month's crude outsourcing service provider around the 5th of each month, usually after
the OPEC+ monthly meeting.

In July, Saudi Arabia expected its flagship Arab Light crude to raise prices to Asia by $0.
85 to $2.
00 per barrel, above the Oman/Dubai benchmark, which Middle Eastern crude is priced below the benchmark
, according to a Reuters survey.

Respondents to the survey said they expect prices to rise
in July for all other Asian grades.

Fuel demand in Asia is expected to strengthen due to the global fuel crunch, refining margins in Asia are at record highs, and prices in Saudi Arabia are expected to rise
.

In addition, despite calls from oil importers to increase supply in the market, OPEC+ Group is widely expected to keep its production schedule unchanged
when it meets on June 2.
Six OPEC+ sources told Reuters last week that OPEC+ is expected to adjust
its modest monthly oil production growth this week when deciding on production levels in July.

Given the general easing of the crude oil futures curve, the expected increase in Saudi prices in July will follow the decline in prices in June
.
Saudi Arabia lowered Asian prices in June from a record high premium to its regional benchmark
for May.