Saudi Arabia August oil prices could climb to their highest level since April, according to industry experts. Rising summer fuel demand and recent Middle East tensions have pushed spot prices higher, prompting the kingdom to consider significant hikes.
Trade sources suggest Saudi Arabia August oil prices for Arab Light may jump by 50-80 cents per barrel. This would set the official selling price (OSP) between $1.70 and $2, the highest in four months. Similarly, Arab Extra Light, Medium, and Heavy crude prices may rise by 50-60 cents.
Recent conflicts between Israel and Iran briefly spiked global oil benchmarks. Fears of supply disruptions through the Strait of Hormuz sent prices soaring. Although markets stabilized after a ceasefire, Middle East spot premiums remain elevated.
Meanwhile, Asian refiners are boosting crude purchases to meet peak summer fuel demand. Many have already requested additional term supplies for August and September. Strong refining margins further support the case for higher OSPs.
Despite bullish factors, OPEC+ plans another major output hike in August. The alliance aims to add 411,000 barrels per day, potentially capping price gains. Market watchers expect Saudi Aramco to announce OSPs after the group’s July 6 meeting.
Saudi Arabia August oil prices influence other Middle Eastern producers, including Iran, Kuwait, and Iraq. These adjustments impact nearly 9 million barrels per day of Asia-bound crude. Aramco bases its pricing on customer feedback and market trends but does not comment publicly before official releases.
With summer demand strong and geopolitical risks lingering, analysts anticipate further volatility. The coming weeks will reveal whether Saudi Arabia August oil prices reach their projected four-month peak.
