Saudi Aramco has raised the price of crude oil sold to Asian customers in May to a record $19.50 per barrel, compared to just $2.50 in April—a $17 increase in just one month. By comparison, even during the tightest period in 2022, the premium was less than $10. This shows that the current issue isn’t just regular price hikes. The Middle East situation, transportation risks, and supply shortages are all being reflected in crude oil prices simultaneously. For Asia, this means significantly higher oil purchasing costs, which could push up gasoline, diesel, shipping, and inflation pressures further down the line. In plain terms, unless the Hormuz issue is fully resolved, this high premium means Asia’s imported inflation pressure will keep rising, which isn’t good news for risk assets. Bitget VIP—lower fees, bigger perks!