Oil Prices Predicted to Rise as Saudis Indicate They Will Not Increase Supply

No Extra Oil to Asia

Data supplied by Bloomberg points to rising prices of crude oil from the Middle East to Asia as Saudi Arabia sends hints that it will refrain from selling extra supplies to refineries there.

Two grades of crude, Murban and Qatar Marine posted rises in their prices for September loading of 6 cents to a discount of 2 cents for Murban per barrel, and 2 cents to a discount of 15 cents a barrel for Qatar Marine.

Summer Supplies Up, Prices Down

The Saudi Arabian Oil Company did sell additional barrels in July, but refiners did not seek more oil in August, according to two refiners who are part of this market. This action should reflect in the prices for Murban and Qatar Marine grades which are sold on the spot market. Yesterday the oil supplied Aramco reassured processors yesterday that it would supply full long-term amounts for the month of August.

The price for Oman crude, ready for immediate loading, fell $1.55 to $109.36 a barrel, a drop of 1.4%. Oil from Dubai for September delivery also fell a similar percentage, down to $108.90 a barrel, while Murban shrank 1.3% to $113.26 a barrel.