Daijiworld Media Network - New Delhi

New Delhi, Apr 6: Saudi Arabia has sharply increased the price of its flagship crude, with state-owned Saudi Aramco setting the official selling price of Arab Light crude for May shipments at a record premium of $19.50 per barrel for Asian buyers.

The price hike comes as energy shipments through the Strait of Hormuz face major disruptions, driven by escalating geopolitical tensions in the region.

The situation follows rising conflict involving the United States, Israel, and Iran, which has severely impacted oil flows from the Persian Gulf. Reports suggest that Iran’s near closure of the key shipping route has significantly constrained global crude supply, fueling volatility in energy markets.

As a result, international oil prices have surged sharply. Brent crude has risen by over 50 percent in recent sessions, while fuel prices across major economies—including the US, Europe, and Asia—have also climbed steeply.

On Monday, crude prices continued their upward momentum. Brent crude futures rose more than 2 percent to trade above $111 per barrel, nearing a 52-week high. Meanwhile, West Texas Intermediate (WTI) crude gained over 3 percent, reaching around $115 per barrel.

These gains follow dramatic increases in the previous session, when WTI jumped more than 11 percent and Brent surged nearly 8 percent—marking their biggest single-day rallies since 2020.

Market analysts noted that supply concerns remain the dominant factor driving prices. Experts indicated that US crude is currently trading in the $110–$112 range, with a key resistance level near $115.

They added that if prices sustain above this threshold, the rally could extend further, while immediate support levels remain slightly lower. Despite potential short-term corrections, the broader sentiment in the market continues to favor buying on dips amid ongoing supply uncertainty.