WASHINGTON (dpa-AFX) - Oil prices jumped on Monday after Saudi Arabia substantially raised crude prices for July.
U.S. crude futures for July settlement traded 0.8 percent higher at $119.81 a barrel, after having hit a three-month high of $121 a barrel earlier. Brent crude futures for August delivery rose 0.8 percent to $120.69.
Saudi Arabia's Aramco, the world's largest oil exporter, has raised prices for customers in Asia, northwestern Europe, and the Mediterranean while prices for U.S. customers remain unchanged.
The July official selling price (OSP) for its flagship Arab light crude to Asia has been hiked by $2.10 from June to a $6.50 premium, the highest since May - suggesting a strong demand outlook in the summer while supply remains tight.
The price hike came despite OPEC+ agreeing to accelerate output increases over the next two months.
Citibank and Barclays raised their price forecasts for 2022 and 2023, saying they expected Russian output and exports to fall by around 1-1.5 million bpd by end-2022.
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