Friday's declines in oil prices were fully offset today following Saudi Aramco's decision to raise prices for the Asian market. This marks the second consecutive month of such a move, coming after an increase in export prices for August, with September prices now also set to rise. Notably, despite Saudi Arabia's increased production, its oil exports have remained relatively constant due to stronger domestic demand.
The second contributing factor is the potential for reduced oil availability in the near future, stemming from Donald Trump's comments regarding a shortened timeline for Russia to engage in substantive peace talks with Ukraine. Trump had previously indicated a 50-day window but now states he is highly dissatisfied with Putin's actions and intends to accelerate this deadline. Trump had earlier mooted the possibility of imposing secondary tariffs of up to 100% on Russia, which would penalize any entity purchasing Russian commodities. However, the feasibility of implementing such tariffs remains questionable, given that Russia primarily exports its oil to three key destinations: China, India, and Turkey.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
