Saudi Arabia slashes crude oil prices by the largest margin in at least 26 years

Odaily Planet Daily reported: As global supply surges intensify competition for buyers, Saudi Arabia has cut its official selling price for its main crude grade to Asian customers in August by the largest margin in at least 26 years. According to a price list, Saudi Aramco reduced the price of Arab Light crude oil for export to Asia in August by $11 per barrel, a discount of $1.50 per barrel against the regional benchmark price. This reduction is larger than the $8 per barrel expected in an institutional survey. Middle East crude oil prices have recently fallen. After resuming exports from the Ras Tanura Persian Gulf port, Saudi Aramco had increased crude oil shipments to about 90% of pre-war levels.

Before the war, Ras Tanura was the main loading port for Saudi crude oil exports. Due to the war blocking the Strait of Hormuz, Saudi Aramco diverted most of its crude oil flow to the Yanbu port on the Red Sea. Previously, the OPEC+ group of oil-producing countries agreed to continue a modest production increase in August. Now, with shipping resuming through the Strait of Hormuz, Gulf oil producers such as Saudi Arabia, Iraq, and Kuwait will be able to utilize their higher quotas. (Jin Shi)