WTI crude oil prices rose above $120 a barrel early today after Saudi Aramco, the Saudi government’s oil company, announced a price increase for Arabian light crude for customers in Asia.
- WTI crude futures rose $1.65, or 1.39%, at $120.52 a barrel.
- BRENT crude futures were up $1.80, or 1.5%, at $121.52 a barrel.
Saudi Aramco has raised Arab Light Crude prices for Asian customers by $2.10 to $6.50 in July. The price increase comes at a time when many countries in Asia are beginning to relax strict measures to control the spread of COVID-19.
Saudi Arabia also increased prices for all types of crude oil for customers in Eastern Europe and the Mediterranean, but remained linked to crude oil prices for U.S. customers.
The meeting of OPEC and OPEC+ has led to an increase in production of 648,000 barrels per day, both in July and August. This is higher than market expectations, which expected OPEC+ to increase production by only 432,000 barrels per day.
Saudi Aramco has benefited from rising global oil prices. The company’s net profit rose 124% to $110 billion in 2021.
In addition, Saudi Aramco has become the world’s most valuable company, overtaking Apple. As of Wednesday, May 11, 2022, Saudi Aramco’s market value was $2.43 trillion. Meanwhile, Apple’s market capitalization dropped by more than 5% to $2.37 trillion.
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