ICE Brent up 1.5% after Saudi Arabia reports no price wars

Saudi Aramco on Tuesday raised its official selling price of light Arab crude to Asian buyers by 80 cents per barrel (barrel), the largest monthly increase since January. Buyers in the United States will see smaller increases next month, with prices rising between 20 cents and 40 cents a barrel. Aramco has also increased tariffs for Northwestern Europe by 80 cents barrels and for the Mediterranean region by 60 cents to 80 cents. Recent price movements suggest that the oil giant will not increase its supplies next month, even though it is grappling with disagreements with its regional rival, the Abu Dhabi National Oil Company.

The United Arab Emirates has invested heavily in its oil industry, announcing in November 2020 its intention to spend $ 122 billion to increase its crude production rate by about 1 million barrels per day by 2030, according to Wall Street. Newspaper.

Saudi Arabia, meanwhile, launched its Vision 2030 in 2016, an aggressive economic plan that distances the Saudis from their dependence on oil. These plans are in competition with the United Arab Emirates.

Analysts who have been following political and economic developments in the Middle East have said it is only a matter of time before the rivalry spills over into OPEC decisions, with friction set to intensify. Yet Riyadh would have to work out of public view with Abu Dhabi to find a compromise. The longer the effort, the greater the likelihood of OPEC + dissolving. OPEC + has not set a date for a new meeting.

Separately, Tropical Storm Elsa is expected to make landfall later this morning on the northern Gulf Coast of Florida, with heavy rain expected in the next six to 12 hours over the Florida Big Bend, followed by a weakening trend. as she heads northeast. along the east coast of the United States through Thursday. Further strengthening could occur on Friday and Saturday as it reappears over the Gulf Stream in the western Atlantic Ocean. Elsa is expected to go extratropical within the next 72 hours.

This year’s hurricane season is expected to be above average, meteorologists say, with up to three to five major hurricanes forecast to hit the United States.

The hurricane season always carries a multitude of risks to gasoline demand, with heavy rains and flooding generally preventing drivers from operating.

In early trading, NYMEX August RBOB futures rose 2.81 cents to nearly 2.2574 gallons after dipping more than 7 cents the previous session to a settlement of 2.2282 gallons. August ULSD futures rose 4.29 cents to 2.1476 gallons, reversing higher from the 2.1049 gallon settlement. ICE September Brent futures gained $ 1.28 to $ 75.79 per barrel and NYMEX August West Texas Intermediate futures rose $ 1.28 to trade at $ 74.64 per barrel.

Liubov Georges can be contacted at [email protected]

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