Saudi Arabia has raised its official selling prices (OSPs) for September crude oil deliveries to Asia. The price for Arab Light crude increased by $1 from August, now at $3.20 per barrel above the Oman/Dubai benchmark. This change meets market expectations due to tight supply and strong demand in the region. The increase comes after the United States set a 25% duty on Indian goods, leading India to consider more imports from Saudi Arabia and other Middle Eastern countries.

Price Changes in Different Regions

Saudi Aramco has also changed its prices for various regions. While prices for U.S. buyers have gone up, European customers will see a small drop. With Brent crude prices around $85 a barrel this week, Saudi Arabia’s decision to raise prices for September reinforces a positive market outlook. It marks the second straight month of price increases, showing that producers are confident in ongoing demand. Traders should view this as a signal for potential price gains in the near future. We’re closely observing the effects of the new 25% U.S. tariff on Indian goods, which is a response to India’s continued trade with Russia. Last year, India’s imports of Russian crude hit over 2 million barrels per day. A significant part of this supply might shift to Middle Eastern sources, adding pressure to demand. This situation reflects the supply discipline we saw from OPEC+ during the 2021-2022 price recovery, which effectively tightened the market. The International Energy Agency’s latest report from July 2025 pointed to a global supply gap of 1.2 million barrels per day. This price increase from the world’s largest oil exporter indicates that major producers have little reason to relax market conditions.

Strategic Trading Opportunities

Given these developments, buying call options on WTI and Brent for October and November 2025 delivery seems like a strong strategy. This approach allows us to benefit from potential price spikes due to shifts in trade flows and ongoing supply tightness. We should look for entry points during any minor price dips, as the overall trend looks solid. The difference in pricing, with increases for the U.S. and cuts for Europe, suggests that a Brent-WTI spread trade could be rewarding. Additionally, the geopolitical tension between the U.S. and India might lead to higher price volatility. We should consider strategies that take advantage of a rising CBOE Crude Oil Volatility Index (OVX), which has already increased by 5% this week. Create your live VT Markets account and start trading now.

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