KSA, U.S. Fight Over Crude Oil Prices

Oil trimmed its weekly loss as Saudi Arabia increased prices for its global crude exports and the U.S. is still considering a potential release of oil from the strategic reserve.

Crude oil in New York session smoothed its weekly loss to 2.8%, rising sharply late in the session Friday after Saudi Arabia raised the official selling price of all the nation’s crudes to buyers around the world.

The Saudis boosted prices just after refusing to bend to U.S. pressure to pump more oil. With OPEC unanimously agreeing to stick to its plans, attention now turns to whether U.S. President Joe Biden will respond.

The increase in Saudi Aramco prices suggests Saudi Arabia sees demand is still improving, particularly in Asia where a resurgence in coronavirus cases could seed doubts about the strength of the economic recovery.

Earlier Friday, U.S. Energy Secretary Jennifer Granholm said that the Administration is looking at a potential release from the Strategic Petroleum Reserve.

Japan announced close contact with the U.S. and the IEA as pressure from consumers grows.