Saudi Arabia Hikes Oil Prices Despite Record Discounts For Russian Crude

Russia’s invasion of Ukraine has simultaneously both eased and complicated the task of Middle Eastern national oil companies. On the one hand, it had pushed the backwardation in the Brent even steeper, making any flows from Europe to Asia uneconomic, hence safeguarding the usual outlets for Saudi Arabia or Iraq. Simultaneously, the risk of seeing Russian supply sanctioned led to oil prices shooting up above $120 per barrel, making the outright basis of March cargoes remarkably profitable. On the other hand, the likes of Saudi Aramco and SOMO…