Commodities
Saudi Aramco Cuts Oil Price Amid Expectations of Expanded Hormuz Access
Saudi Arabia's state oil producer Aramco has cut its main crude oil price for Asia by 50 cents a barrel, marking the fifth lowest price since 2000. The reduction brings the Arab Light oil price for delivery to customers in Asia next month down to $2 less than the regional benchmark.
The move comes as Gulf oil shipments continue amid expectations of expanded access through the Strait of Hormuz. A potential Iran-Oman agreement could reopen the critical waterway, allowing Saudi Arabia to increase exports from its main Gulf terminal.
Global benchmark Brent crude has slumped this week and is trading near $80 a barrel, a 20% drop in just two weeks, on expectations that flows through Hormuz may soon increase.