Saudi arabia’s decision to increase crude oil prices sparks global economic concerns

Saudi Crown Prince Mohammed bin Salman
Saudi Crown Prince Mohammed bin Salman

UAE : After a decision by Saudi Arabia, the chances of crude oil becoming expensive in the global markets have increased. Crude oil prices are seeing a rise on Monday also. In fact, Saudi Arabia has decided to increase the price of crude oil in June for most sectors. This decision of Saudi Arabia may worsen the economy of many countries, after which oil futures rose on Monday and the chances of Gaza ceasefire agreement also appear less. This again raised fears that the Israel-Hamas conflict could still escalate in the major oil-producing region.

Oil prices seem certain to go up after Saudi Arabia increased the June OSP for most of the fields amid reduction in oil supply this quarter. Crude oil prices are trading with a rise in the global market on Monday. WTI crude is up 0.31 per cent at $78.85 per barrel while Brent crude is up 0.24 per cent at $83.16 per barrel.

Saudi Arabia raised the official selling prices of its crude sold to Asia, northwestern Europe and the Mediterranean in June, signaling expectations of stronger demand this summer. The effect of this is that after falling a little more than 7.3 percent last week due to geo-political tension, ICE Brent has started the new trading week at a strong level.

Last week, both crude oil contracts recorded their biggest weekly losses in three months. In this, Brent fell by more than 7 percent and WTI fell by 6.8 percent.


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