The main Saudi oil producer, Aramco, decided to increase its selling price following the increasing soilid market demand. The price of oil also strengthened.
World crude oil prices continued to strengthen in early trading (08/November) after Aramco raised its official selling price to consumers.
At the time this news was published, Brent oil was at around $84.38 per barrel.
Meanwhile, WTI (West Texas Intermediate) oil was trading at around $82.54.
Late last week, Aramco announced a December increase in the selling price of oil that was imposed on Asian consumers.
The move by the main producer of crude oil Saudi Arabia is seen as an indication of higher demand amid depleting oil supplies.
The reason is, OPEC + has not changed its production policy in recent months.
Whereas at the G20 summit in Italy, US President Joe Biden had urged member countries, including oil producers, to immediately increase production.
According to him, soaring oil prices will actually hamper the momentum of economic recovery after the pandemic.
China even had to hold back on buying oil following the increasingly expensive price in the international market.
As a result, China's oil imports slumped to a three-year low in October.
In this regard, the Chinese government has announced to release fuel reserves to the domestic market to balance the slump in imports.
Bank of America Predicts Oil Breaks $120 Per Barrel
The significant spike in oil prices since the beginning of the year has received a lot of attention from market players.
The head of global commodity markets at Bank of America (BofA) recently forecast oil prices could touch $120 a barrel in the summer of next year.
BofA predicts that oil demand will continue to increase in the next few months.
The spread of COVID-19 vaccination rates in many countries will support the recovery of economic activity, thereby boosting oil demand.
Constraints in refining and stagnating global supply chains have contributed to the surge in oil prices.
Even in a further outlook, BofA sees the potential for recovery in global oil demand to continue to outpace supply over the next year and a half.
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