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Saudi cuts Asia crude loading price by $11 in August
The cut marks the biggest month-over-month reduction in two decades, with Arab Light priced at a $1.50 per barrel discount to the Oman/Dubai average.
Gulf oil producers are restarting competition for Asian buyers after the tentative reopening of the Strait of Hormuz, with Saudi Arabia cutting the official selling price for its crude loading to Asia in August by $11 per barrel versus July, according to OilPrice.
The outlet said Saudi Arabia, along with Iraq, Kuwait, and the United Arab Emirates, has moved to attract demand in its biggest market, offering deeper discounts to the Dubai/Oman benchmark that Gulf producers use to price crude.
OilPrice added that Arab Light, Saudi Arabia’s flagship grade, will be sold next month at $1.50 per barrel below the Oman/Dubai average, a rare move for the world’s top crude exporter.
The report also cited recent developments in the Strait of Hormuz, including Iranian attacks on tankers, U.S. retaliatory strikes, and the U.S. revoking a sanctions waiver for Iranian oil sales, noting the situation could affect how quickly shipping traffic returns to normal.
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