WTI jumps to $96 mark as Saudi set to hike oil price to record

Having found buyers just above the $94 threshold, WTI prices are rebounding firmly amid a moderately positive risk sentiment and reports that Saudi Arabia is mulling hiking oil price to record.

The world’s top crude exporter Saudi Arabia is considering raising the price of its flagship crude to Asia at a record differential for September despite weak physical demand.

According to the Bloomberg survey, “Saudi is expected to price its Arab Light crude to Asia at a $10.80-a-barrel premium to the region’s benchmark for September-loading cargoes.”

 Saudi Aramco is set to release its official selling prices for September next week. The oil price hike under consideration could suggest a potential turning point for the market.

Despite the latest upswing in the black gold, the further upside appears elusive heading into the expected Fed 75 bps rate hike decision. Additionally, looming recession fears, courtesy of the worsening European gas crisis, China’s covid lockdown and global central banks’ tightening spree, also limit the bullish attempts in the US oil.

At the time of writing, WTI is trading at $95.50, retreating from daily highs of $95.88, still up 0.75% on the day.

WTI: Technical levels to consider