Saudi Arabia Significantly Cuts Crude Oil Prices, Largest Reduction in at Least 26 Years

Odaily Planet Daily News – As global supply surges intensify competition among buyers, Saudi Arabia has slashed the official selling price of its main crude grade for Asian customers in August, marking the largest reduction in at least 26 years. According to a pricing sheet, Saudi Aramco lowered the price of Arab Light crude for August exports to Asia by $11 per barrel, with a discount of $1.50 per barrel relative to the regional benchmark price. This reduction exceeds the $8 per barrel drop anticipated in institutional surveys. Recently, Middle Eastern crude prices have been declining. After resuming exports from the Ras Tanura port in the Persian Gulf, Saudi Aramco temporarily increased crude shipments to approximately 90% of pre-war levels. Before the war, Ras Tanura was the primary shipping port for Saudi crude exports. Due to the war blocking the Strait of Hormuz, Saudi Aramco redirected most of its crude flows to the Red Sea's Yanbu port. Previously, the OPEC+ group of oil-producing countries agreed to continue modest production increases in August. Now, with the resumption of shipping through the Strait of Hormuz, Gulf oil-producing nations such as Saudi Arabia, Iraq, and Kuwait will be able to take advantage of their higher quotas. (Jin10)