Saudi Aramco Slashes Arab Light Crude Price to Asia
Saudi Arabia's state oil company, Saudi Aramco, has lowered the official selling price for its flagship Arab Light crude oil to Asia in September. The price cut of $2 a barrel below the Oman/Dubai average is the lowest level since June 2020.
The move follows a decline in the spot benchmark price last month as spot Dubai cash premiums and Oman both averaged lower. Oil market participants are also watching Iran-Oman talks this week for signs of progress towards a peace deal that could lead to the reopening of the Strait of Hormuz, through which about 20 per cent of global oil and liquefied natural gas supplies flow.
The benchmark Brent crude futures have returned to levels last seen when the US and Iran reached an interim peace agreement on June 17. Meanwhile, Aramco also cut official selling prices for Europe, the US, and the Mediterranean by $1.25 a barrel each.