Odaily Planet Daily report: As global supply surges intensify competition among buyers, Saudi Arabia has cut its official selling prices for key crude grades to Asian customers in August by the largest margin in at least 26 years. According to a price list, Aramco reduced the price of Arab Light crude exported to Asia in August by $11 per barrel, at a discount of $1.50 per barrel against regional benchmarks—larger than the $8 per barrel decline anticipated in institutional surveys. Crude prices from the Middle East have recently declined. Following the resumption of exports from the Ras Tanura port on the Persian Gulf, Aramco has raised its crude shipment volumes to approximately 90% of pre-war levels.
Before the war, Ras Tanura was Saudi Arabia’s primary export terminal for crude oil. Due to the war blocking the Strait of Hormuz, Saudi Aramco redirected most of its crude flows to 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 producers such as Saudi Arabia, Iraq, and Kuwait will be able to utilize their higher production quotas. (Kingstone)