Saudi Aramco hikes crude prices

OIL PRICES: Saudi Aramco confirms larger than expected price increase. (Getty Images)

Top oil exporter Saudi Arabia raised its official selling prices to all customers for its crude in March, state oil firm Saudi Aramco said on Wednesday.

The rise came as the kingdom cut output in February to below its OPEC target of 8.05 million barrels per day (bpd) as it races to match supply with falling global demand.

Oil traders said the price increase was larger than expected and would discourage some customers.

"That seems to be the intention," said one.

Aramco raised the price of Arab Light to U.S. refiners by $3 a barrel from February to WTI plus $1 a barrel.

It raised the Arab Light price for refiners in the Far East by 70 cents to the Oman/Dubai average plus 25 cents a barrel.

The price rises for Arab Light and heavier crudes in March outstripped Asian trader expectations.

Saudi term crude supplies to the United States are priced as a differential to U.S. crude benchmark West Texas Intermediate. (Reuters)

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