Refiners prefer low-sulfur crude, which is easier to process into transport fuels compared with heavy grades from Saudi Arabia. The Middle East country, OPEC's biggest producer, said it will raise output by about 3.3 per cent to 9.45 million barrels a day in June.
Crude oil for June delivery was at $127.20 a barrel, up 15 cents in electronic trading on the New York Mercantile Exchange.
Prices are 92 per cent higher than a year ago. Crude touched $127.82 on May 16, the highest since trading began in 1983. The June contract expires today and the more active July future was at $126.80 a barrel, up 8 cents.
The Saudi announcement followed a meeting between US President George Bush and King Abdullah. The desert kingdom is the world's largest oil exporter and the most influential member of the Organization of Petroleum Exporting Countries.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app