By Will Horner


Saudi Arabia raised prices of its crude oil exports to Asia and Europe for the month of July, even as the Organization of Petroleum Exporting Countries prepares to increase its output during the next two months.

Saudi Arabian Oil Co., the nation's state-run oil company, increased the price of its benchmark Arab Light crude by $2.10 a barrel for Asian buyers.

The company, known as Saudi Aramco, added $2.20 a barrel for consumers in Northern Europe, and $2.00 a barrel for buyers in the Mediterranean. Prices for the U.S. market remained unchanged.

These changes mean, in July, Asian consumers will pay a $6.50 premium for the company's crude oil over the average of the Oman and Dubai benchmarks at the time.

In Northern Europe and the Mediterranean, consumers will now pay a $4.30 and $3.90 premium a barrel compared with the ICE Brent oil benchmark.

The price hike comes despite OPEC and its allies--known collectively as OPEC+--last week deciding to increase its total output in July and August by 648,000 barrels a day. Saudi Arabia is a leading member of OPEC.

Despite the increase, the oil market is expected to remain tight, as the war in Ukraine continues to disrupt global energy shipments and demand for oil continues to recover, Vivek Dhar, an analyst at the Commonwealth Bank Australia, said in a note to clients.

"While that increase is sorely needed, it falls short of demand growth expectations, especially with [the European Union's] partial ban on Russian oil imports also factored in," he added.


Write to Will Horner at william.horner@wsj.com


(END) Dow Jones Newswires

06-06-22 0542ET