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US President Donald Trump wants Saudi Arabia to lower oil prices. In his opinion, this will help end the war in Ukraine. However, the authorities of the oil-producing country probably did not listen to him. After all, Saudi Arabia will sharply raise oil prices for buyers from Asian and European countries in March. At least, this follows from the statement of the state-owned company Saudi Aramco.
Thus, the cost of Arab Light, the main grade going to Asia, will be increased by $2,4 per barrel - the maximum dynamics since August 2022.
"As a result, this grade will become $3,9 per barrel more expensive than the Oman/Dubai basket of oil," the report said. It added that the cost of oil for the countries of Northwestern Europe and the Mediterranean will increase by $3,2 per barrel, and for the United States - by $0,1-0,3 per barrel.
For European companies that decide to buy Saudi oil for delivery in March, the state-owned company is raising the price by $3,2 per barrel. For buyers from the US, the increase will be very small – $0,1-0,3 per barrel.
After the Saudi Aramco announcement, oil prices went from falling to rising: the American WTI grade added about 0,4% to $75 and $71,4 per barrel, respectively.
So far, the market is generally pressured by negative expectations due to the trade war that Trump threatens to unleash and which could lead to a slowdown in global economic growth.
There were also reports that Trump had instructed his administration to increase economic pressure on Iran. But that didn't stop the price decline.
As a reminder, Saudi Arabia is focused on the stability of the oil market. This was stated by Saudi Arabia's Minister of Economy, Faisal Alibrahim. The minister commented on the question of whether Saudi Arabia will reduce the price of oil after the request of US President Donald Trump.
