Having found buyers just above the $94 threshold, WTI prices are rebounding strongly amid moderately positive risk sentiment and reports that Saudi Arabia is considering raising the price of oil to a record level.
The world’s top crude exporter, Saudi Arabia, is considering raising the price of its star crude to Asia by a record spread for September, despite weak physical demand.
According to the Bloomberg study, “Saudi is expected to price its Arab Light crude to Asia at a premium of $10.80 per barrel to the region’s benchmark for September shipments.”
Saudi Aramco is scheduled to publish its official sales prices for September next week.. The rise in oil prices that is being studied could suggest a possible turning point for the market.
Despite the latest rise in black gold, further hikes seem unlikely ahead of the Fed’s expected decision to raise rates by 75 basis points. In addition, fears of a looming recession, courtesy of the worsening gas crisis in Europe, the Chinese lockdown and the tightening of central banks globally, also limit the bullish attempts of US oil.
At the time of writing, WTI was trading at $95.50, pulling back from daily highs of $95.88, though still up 0.75% on the day.
WTI: Technical Levels
Source: Fx Street
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