Gulf Producers Flood Market with Oil as OPEC Loses Control
Gulf oil producers are aggressively pushing to reclaim market share after the Iran war, putting pressure on OPEC's authority and potentially weakening oil prices. The UAE has led the charge, increasing its crude exports to a record 3.8 million barrels per day (bpd) in June.
Saudi Arabia is also turning up the taps, with June exports reaching their highest level since the start of the war at 4.5 million bpd, and July shipments set to jump to 6.4 million bpd. Iraq and Kuwait have resumed exports, each shipping around 500,000 bpd through Hormuz in June.
Producers are offering steep discounts to attract buyers, with Saudi Arabia setting the August official selling price of its flagship Arab Light crude at $1.50 a barrel below the Oman/Dubai benchmark, down from a premium of $9.50 in July.