The price of Brent oil is trading at USD 119,72 per barrel, that is, an increase of at least 68% in one year.

Saudi Arabia, which is one of the largest exporters of oil in the entire East, said it would be increasing the value of a barrel for some countries that are part of Asia. In short, the value of this commodity is already up by at least 68% in its twelve months. The impacts may again fall on Petrobras, which argues that the price of refineries is already out of date with the market and that they need to carry out further readjustments, even more so on diesel. Petrobras has permission, since the Temer government in 2016, to to carry out all the follow-up of variations that occur in the foreign market. 

Oil prices and the Covid-19 crisis in the East and Saudi Arabia

According to a story shared on the Youtube channel belonging to Jovem Pan News, it is estimated that the price of oil reached one of its highest values ​​of 2022 during the past week. The reasons for this to happen were the most varied, mainly the war that takes place between the Russia and Ukraine. 

Company Arab light, which belongs to Saudi Arabia, stated that it would be increasing the value of each barrel of oil by at least 6 dollars for companies that would buy the product in the East, the increase would be based on the price charged in Dubai.

 The market, however, was predicting that the variance would be only a dollar or two at its peak. That is, it was well above what is being predicted by the sector.  “The price jump is unexpected, especially for Arab Light. We are intrigued by the decision.”, said an Asian oil trader.

The increase in oil production would be at least 650 barrels per day, according to the state company in partnership with the OPEC company. Larger-scale production is taking place as a way to suppress the crisis left by the lack of offers from Russia. However, even with this production, it is not being enough to carry out a price control, becoming more inflated every day. 

Current production has been well above what was guaranteed for the year 2021, when they were in the range of 500 barrels per day. Angola and Nigeria are expected to be one of the countries most affected by the variation, Russia will also have to pay a higher price for each barrel it buys. The oil crisis should subside after China opens up to some cities, such as Shanghai, says the article shared by Reuters during this Monday, June 06th.

“Demand is also very strong this cycle and Saudi Arabia can afford to increase OSPs,” said another netizen on his social networks. According to him, the demand for oil is so inflated that even if the increase were greater, they would still be able to sell a large part of the barrels produced by the institution. A large part of oil demand, however, cannot be controlled because of the persistent flows that take place between China and India, that allow the purchase through Russian intermediary.