Saudi Arabia has reached a record-high premium for its flagship Arab Light crude oil intended for Asian markets in May.
State-owned giant Saudi Aramco set this price at $19.50 per barrel above regional benchmarks.
This move reflects the extreme pressure on global energy markets caused by the ongoing conflict involving the United States, Israel and Iran which has effectively restricted the Strait of Hormuz, a vital global shipping artery.
Although this is the highest premium ever recorded, it remains lower than the $40 per barrel figure some traders had feared.
The disruption has significantly tightened supply forcing buyers to seek alternatives while OPEC+ attempts to stabilize the situation with a modest output increase of 206,000 barrels per day.
The intensity of the crisis was highlighted earlier by Aramco CEO Amin H. Nasser, who warned that “there would be catastrophic consequences for the global economy.”
He further emphasised the severity of the situation stating, “While we have faced disruptions in the past, this one by far is the biggest crisis the region’s oil and gas industry has faced.”
