Saudi Arabia, the world's top oil exporter, raised July crude oil prices for Asian buyers to higher-than-expected levels amid concerns about tight supply and expectations of strong demand in summer.

The official selling price for July-loading Arab Light to Asia was hiked by $2.1 a barrel from June to $6.5 a barrel over Oman/Dubai quotes, just off an all-time-high recorded in May.

That was much higher than most market forecasts of an increase of around $1.5. Only one respondent of six in a Reuters poll had predicted a jump of $2.

The hike came despite an agreement by OPEC+ states to boost output by 648,000 barrels per day in July and a similar amount in August.

Demand expectations rose on the back of the easing of some COVID-19 restrictions in China and the start of the U.S. summer driving season.

Brent crude firmed 0.6 percent to $120.40 a barrel at 0640 GMT after touching an intraday high of $121.95. U.S. West Texas Intermediate crude futures were up 0.5 percent at $119.48 a barrel after earlier hitting a three-month high of $120.99.

(With input from Reuters)