After breaking above $120 per barrel earlier in the session, WTI crude futures steadied around $119 per barrel after Saudi Arabia sharply raised prices for its crude sales in July, highlighting tight global supplies even after OPEC+ agreed to accelerate its output increases.
Saudi raised the official selling price for its flagship Arab Light crude bound for its main Asian market and to northwest Europe while holding the premium steady for barrels going to the US.
Last week, OPEC+ decided to increase output in July and August by 648,000 barrels per day, or 50 percent more than previously planned.
However, markets continued to doubt the group’s ability to meet demand as several member countries struggle to boost output, at a time when demand is soaring in the US amid peak driving season and as China eases Covid lockdowns.
Meanwhile, traders assessed reports that the US was considering allowing more sanctioned Iranian and Venezuelan oil onto global markets to make up for Russian crude.