Saudi Aramco slashes Asia crude prices

Saudi Arabia’s state oil company Saudi Aramco cut the August official selling price for Arab Light crude to Asian buyers by $11 a barrel, setting it at a $1.50 discount to the Oman/Dubai average, Reuters reported.

The cut was the largest monthly reduction in more than two decades and is seen as an attempt by Saudi Arabia to regain market share in Asia after exports fell amid military tensions involving Iran. 

Asia accounts for around 80% of Saudi Aramco’s sales. Traders said the record cut may still not be enough to fully win back buyers, as crude from other Gulf producers as well as supplies from Africa and the Americas remain competitive. 

Saudi oil exports rose to 4.53 million barrels per day in June, according to Kpler data, but remained about 2 million bpd below average levels recorded before U.S. and Israeli operations against Iran.

Saudi crude supplies to China fell to 626,000 bpd in June, the lowest in 12 years, as demand weakened amid high prices and logistics risks in the region. 

N.Tebrizli