Saudi Arabia’s state-owned oil giant, Saudi Aramco, has announced its largest reduction in official crude oil prices in at least 26 years. According to Bloomberg, the new pricing, announced on Monday, July 6, applies to shipments scheduled for next month, particularly those destined for Asian markets.<\/p>\n
The company cut the official selling price of its flagship Arab Light crude by $11 per barrel, leaving it priced at a $1.50 discount to the regional benchmark. The last time Arab Light traded below the benchmark was during the oil price wars of 2015 and 2020.<\/p>\n
Market analysts describe the move as the steepest monthly reduction in official selling prices since at least 2000. The decision reflects an oversupplied global oil market and intensifying competition among producers for market share.<\/p>\n
Saudi Aramco also announced even deeper price cuts for European buyers, lowering prices by $15 per barrel, while prices for U.S. customers were reduced by $8 per barrel.<\/p>\n
The price cuts come amid a growing global oil surplus. Following temporary agreements between the United States and Iran, crude exports from the Persian Gulf region have increased significantly, resulting in higher volumes of oil reaching international markets through the Strait of Hormuz.<\/p>\n
Additional downward pressure has come from weakening demand in several key markets, particularly China. As a result, spot crude prices have fallen to levels not seen since the COVID-19 pandemic.<\/p>\n
Despite the substantial reductions, some Asian refiners note that Saudi crude remains more expensive than competing supplies available on the spot market. This suggests that oil prices could remain under pressure in the coming months.<\/p>\n
Saudi Arabia has traditionally played a pivotal role in balancing the global oil market by adjusting production levels in response to changing market conditions. The Kingdom is currently increasing output gradually under the framework of the OPEC+ production agreement.<\/p>\n","protected":false},"featured_media":151882,"menu_order":0,"template":"","newscat":[9],"newstag":[],"issues":[],"class_list":["post-151881","news","type-news","status-publish","has-post-thumbnail","hentry","newscat-novosti"],"_links":{"self":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/news\/151881","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/types\/news"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/media\/151882"}],"wp:attachment":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/media?parent=151881"}],"wp:term":[{"taxonomy":"newscat","embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/newscat?post=151881"},{"taxonomy":"newstag","embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/newstag?post=151881"},{"taxonomy":"issues","embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/issues?post=151881"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}