Saudi Arabia is aiming to raise prices for its exported heavy crude to Asia by August to the highest level in more than three years, according to Reuters.

The country’s decision comes as refiner profits on churning out fuel oil from heavy crude hit a new high record, with Saudi Aramco reducing the production of heavy crude as part of a campaign led by the Organization of the Petroleum Exporting Countries (OPEC) to reduce the global oil glut, Live Mint stated.

Crude buyers assume that Saudi Aramco may increase the official selling price for Arab Heavy crude to Asia by $0.2 a barrel to $1.65, below the average of Oman and Dubai quotes in August.

“Maybe they (Saudi Aramco) will cut Arab Heavy supplies for August because of the OPEC cut and summer demand for power generation,” said a trader with a North Asian refiner.

It worth noting that, Saudi crude official selling prices are mostly released during the first week of each month, and set the trend for other counties’ prices, such as Iranian, Kuwaiti and Iraqi prices, affecting more than 12mb/d of crude bound for Asia.

Saudi Aramco determines its official crude prices based on recommendations from customers. It also considers calculating the change in the value of its oil over the previous month based on yields and product prices.