Svmuu News: As a surge in global supply intensifies competition for buyers, Saudi Arabia has cut its official selling prices for its main crude grades to Asian customers in August by the largest margin in at least 26 years. According to a price list, Saudi Aramco cut the price of Arab Light crude for August exports to Asia by $11 per barrel, setting it at a discount of $1.50 per barrel to the regional benchmark—a larger reduction than the $8 per barrel expected in industry surveys. Crude oil prices in the Middle East have recently fallen. After resuming exports from the Persian Gulf port of Ras Tanura, Saudi Aramco temporarily increased crude oil shipments to about 90% of pre-war levels.
Before the war, Ras Tanura was the main loading port for Saudi crude exports. As the war blocked the Strait of Hormuz, Saudi Aramco redirected most of its crude oil flows to the port of Yanbu on the Red Sea. Previously, the OPEC+ group of oil-producing nations agreed to continue modest production increases in August. Now, with shipping through the Strait of Hormuz resuming, Gulf oil-producing countries such as Saudi Arabia, Iraq, and Kuwait will be able to utilize their higher production quotas. (Jin Shi)