Supply outstrips demand! Saudi Arabia sharply raised the price of oil it sells globally

After OPEC+ ignored the US call to accelerate oil production, Saudi Arabia sharply raised the price of crude oil to buyers around the world, sending another bullish signal
to the oil market.

Saudi Aramco, the world's largest oil producer, raised the price of its December sales of Arab Light crude to Asia by $1.
40 a barrel on Saturday to $2.
7 a barrel
.
According to last week's survey, the market expects the company to raise its selling price by only $0.
5/barrel to $1/barrel
.
Excluding the period after Saudi Arabia and Russia ended their oil price war last year, Saudi Aramco's oil sales to Asia rose at the second
highest monthly rate in 20 years.

Brent crude oil futures extended Friday's rally, at $82.
94 per barrel at press time, up more than 60% this year; WTI crude oil futures were trading at $81.
64/barrel
.

The past month alone has changed dramatically

Saudi Aramco's oil prices tend to be a bellwether in the oil market, which means Middle Eastern countries are likely to raise prices across the board
.

Asia accounts for more than 60% of Saudi Arabia's oil exports and is a veritable "big customer"
.
It is worth mentioning that Saudi Arabia cut the price of Arab light crude sold to Asia in October by $1.
3/b, far exceeding expectations of $0.
58/b, in an attempt to attract Asian buyers to buy more oil
.
However, in the past month alone, Saudi Arabia has begun to raise prices
again.

Major consumers such as the United States are pressuring OPEC+ to increase production of more oil to meet demand, but OPEC+ stuck to its original plan on Thursday to increase production by 400,000 b/d
a month.
The United States is even more threatening: "will consider using all means to protect the sustained recovery of the economy.
"
Analysts believe that the United States may release its strategic oil reserves
.

BP said this month that global oil demand exceeded 100 million b/d
for the first time since the pandemic began.
Analysts expect the oil market to continue to be in short supply for the rest of the year after OPEC+
's decision.