USD/SAR strengthens as Saudi raises Asia oil prices amid tight supply

USD/SAR has gained momentum following Saudi Arabia's decision to raise September crude prices for Asian markets, marking the second consecutive monthly increase. The Kingdom lifted Arab Light crude prices by $1 to $3.20 per barrel above the Oman/Dubai benchmark, aligning with market expectations amid tightening global oil supplies. This move particularly impacts oil-importing Asian currencies, with USD/INR expected to face additional upward pressure as India anticipates increased purchases of Saudi crude following new U.S. sanctions on Russian oil. The price adjustment reflects OPEC+'s production discipline and robust regional demand, supporting the dollar against commodity-importing currencies. Technical indicators suggest USD/SAR could test recent highs if oil prices maintain their upward trajectory. Traders should monitor crude oil futures and Asian currency pairs for correlated movements, as sustained high energy costs typically weaken oil-importing nations' currencies while strengthening petrodollar flows.