Saudi price hikes should continue until they get to their price target, whatever that might be.
Saudi’s formula changes which effectively raise prices. Aramco’s formula changes for April sales basically amounted to a price hike. Sales to US refiners are set against WTI prices. European refiners get priced off of Brent and Asia buyers are priced off a spread to Dubai and Oman. Essentially Saudi Arabia made it more expensive on a relative basis with the goal of taking crude off the market to counter the effect of weak demand.
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