Saudi Arabia raised the price of its main oil grade to Asia to a record as Iran's near closure of the Strait of Hormuz throttles regional energy flows and uncertainty over the duration of the conflict convulses markets.
State oil producer Saudi Aramco will increase flagship Arab Light crude prices for May sales to a premium of $19.50 over the benchmark for refiners in Asia, according to a price list seen by Bloomberg. That's less than the $40 a barrel premium expectation of traders and refiners in a Bloomberg survey.
ALSO READ: Brent Crude Tops $110 As Trump Sets New Hormuz Deadline, Oil Rally Extends
The US and Israeli war against Iran has upended global energy markets with the Islamic Republic effectively shutting the vital Strait of Hormuz and choking off its neighbors' supples out of the Persian Gulf. Brent crude has jumped by more than 50%, and prices of fuels from the US to Europe and Asia have spiked.
ALSO READ: OPEC+ Raises May Oil Output Target To 206,000 Barrels A Day, Sees Long Supply Hit From War
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