FAST FIVE: As Oil Tumbles, Saudis Hike Asian Prices Near Record To Meet Soaring Demand

As Oil Tumbles, Saudis Hike Asian Prices Near Record To Meet Soaring Demand With oil tumbling almost 10% this morning, one would think that a major oil consuming country has suddenly gone dark, plunging into a deep depression.

The Saudis also lifted the prices of all other grades for Asia in August, with Extra Light at a record premium.

The market viewed the price increase as a sign that the world's top crude oil exporter expects robust demand this summer despite growing fears of a recession that could sink demand.

Still, cargoes bound for Asia – a crucial market where China and India have stepped in to prop up Russian exports others have shunned in response to its invasion of Ukraine – were down by more than 15% on both a weekly and four-week average basis from the highs seen at the end of May.

Overall, Russia's seaborne shipments returned to 3.67 million b/d, broadly in line with the plateau level achieved since the start of April.   In other words, with Russian supply to Asia suffering a modest hiccup, it was Saudi Arabia's turn to step up and it did so at a near record price, a price which China incidentally had no problem paying because half a world away, a bunch of CTAs dumped oil because some other CTA dumped oil before them and the momentum-chasers all piled on, for which Beijing is very grateful.