Yahoo Finance Aramco Cuts Aug. Crude Prices to Asia in Sign of Weaker Demand
(Bloomberg) -- Saudi Aramco cut prices for all of its oil grades to Asia for a second month in a sign that the world’s biggest crude exporter sees continued demand weakness in its main market.
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Oil prices have risen over the past month as Aramco crimped exports, with June shipments to customers abroad dropping to a 10-month low. Brent crude recovered from a slump to trade above $85 a barrel as geopolitical risks persisted in the Middle East and Hurricane Beryl threatened to batter some US production.
Aramco will reduce the price of its flagship Arab Light crude by 60 cents a barrel to $1.80 a barrel above the regional benchmark for shipment in August. Traders and refiners expected Aramco to lower the official selling price by 90 cents, according to a survey.
Last month, the OPEC+ producers group, led by Saudi Arabia and Russia, outlined production quotas through to the end of next year. Some members who have been making additional output reductions agreed to gradually roll some of those back starting in October.
That decision caused Brent to slump to the lowest level since February amid concern that softer demand growth wouldn’t absorb the extra supply. Saudi Arabia, the biggest producer in the Organization of Petroleum Exporting Countries and the group’s de facto leader, later emphasized that the group could decide against going ahead with the increases and would continue to monitor market conditions. Prices subsequently recovered from the lows seen after the meeting.
Saudi Aramco raised all prices to Northwest Europe and the Mediterranean by 90 cents for August. Some prices to the US were also raised slightly.
--With assistance from Grant Smith.
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