Saudi Arabian move boosts the oil price

OIL rose to the highest level in more than a week as Saudi Arabia raised prices for shipments to Asia, its biggest regional market. Futures climbed as much as 3.7 percent in New York and 3.6 percent in London, where trading volumes were low because of the Easter Monday holiday in Europe. Saudi Arabia, the world’s biggest crude exporter, narrowed the discount on its main Arab Light grade for next month’s sales to Asia. Prices also gained on speculation Iran’s nuclear accord with world powers will not lead to an immediate increase in supplies. Oil is still more than 50 percent lower than last year’s peak as US inventories stayed at the highest level in at least three decades and Opec refused to cut production. “The Saudis raised their prices to Asia and it’s kind of supportive to oil,” Gene McGillian at Tradition Energy said. “People realised that we aren’t going to see a big influx of Iranian oil in the market for at least the next three to six months. The risk reward is poised on the upside.” – Bloomberg