Aramco is raising Arab Light oil prices by 50 cents in September. It is a record increase in oil prices in Asian countries. The rise comes a day after a small increase in OPEC+ production. 

Saudi Arabia raised oil prices for Asian buyers to a record high, while the global market remains tight, despite signs of weakening demand amid a slowing economy. The sharp trend is clearly visible in oil prices in Asia by month. 

State-run producer Saudi Aramco raised the price for next month’s supply in Asia to $9.80 a barrel above the regional benchmark. Traders and refiners had expected a bigger increase of $1.50, according to Bloomberg reports, according to a survey conducted in late July. 

What influenced the price increase? The U.S. has been negotiating for months with Saudi Arabia to increase its oil production. The diplomatic efforts yielded results and Saudi representatives agreed to take such a step.

Oil prices were still falling Wednesday, with Brent crude falling nearly 4 percent to below $100 a barrel after data showed low U.S. gasoline consumption and a rebound in Libyan production. Brent crude oil prices jumped to about $130 a barrel after the start of the war in Ukraine.