Riyadh (Lord Media): Saudi Arabia has slashed the official selling price of crude oil for Asian countries to a record low, reducing it by 11 U.S. dollars per barrel for August supply, marking the largest cut in 26 years. This move follows the OPEC Plus decision to increase production, amidst falling global oil prices.
Saudi Arabia aims to maintain its market share as demand in Asia, particularly China, remains weak. Saudi Aramco has set the price of its key Arab Light crude for Asian buyers at a discount of 1.50 U.S. dollars per barrel against the regional benchmark.
Experts suggest this will provide cheaper crude to China, India, Japan, South Korea, and other Asian nations, potentially increasing competition in the global market. With OPEC Plus approving an additional daily production of 188,000 barrels from August, price pressure is expected to persist.
Following Saudi Arabia’s decision, Asian economies, including China, India, Pakistan, Japan, and South Korea, are likely to benefit. Experts indicate that if prices remain at current levels, there could be a reduction in fuel import costs, easing foreign exchange pressure, and slowing inflation.
In the global market, Brent crude is trading around 72 U.S. dollars per barrel, and West Texas Intermediate is near 69 U.S. dollars per barrel, lower than the peak prices recorded during the Iran-Israel tensions.
