Saudi influence on oil

Oil prices opened the week on a positive note as Saudi Arabia’s oil major Aramco raised prices for Asian customers. Oil rose after a weekly decline as Saudi Arabia raised prices for its Asian exports for a third month. Brent crude started the new week testing above $83. Brent crude had fallen more than 7% last week, its biggest loss since February. Saudi Aramco raised the official June selling price of its key Arab Light product by 90 cents to $2.90 a barrel above benchmark prices. Oil fell last week as risks of conflict in the Middle East eased, capping the commodity’s year-to-date gains. OPEC and its allies are expected to continue supply cuts in the second half of their meeting next month. Ahead of that, Iraq and Kazakhstan have announced plans to reduce flows to bring production into line with agreed quotas. “The price action was more supportive in early trading due to the increase in Saudi products,” said Warren Patterson, head of commodity strategy at ING Groep NV. The oil market is also monitoring geopolitical developments The oil market is also monitoring developments in the Middle East. The Israeli army has begun evacuating civilians from Rafah. This is a possible prelude to a long-awaited assault on Gaza City and comes after talks with Hamas over the weekend failed to reach a possible ceasefire.