Saudi Arabia, the world’s top oil exporter, has cut July crude prices for Asian buyers to their lowest level in nearly four years, signaling a strategic push to reclaim market share after OPEC+ accelerated production hikes.
Key Details:
- Price Cut: State-owned Aramco reduced its official selling price (OSP) for flagship Arab Light crude to $1.20/barrel above Oman/Dubai benchmarks, down from June’s $1.40 and matching May’s low. The move surprised traders, who expected a smaller 40–50 cent drop.
- OPEC+ Context: The decision follows the group’s third consecutive monthly output boost (+411,000 bpd for July), citing strong demand and dwindling global stocks. Yet, Saudi Arabia’s price cuts suggest a focus on competitiveness over short-term margins.
- Market Impact: The OSP sets pricing trends for 9 million bpd of Asian-bound crude from Iran, Kuwait, and Iraq, potentially intensifying competition among producers.
Why It Matters:
While OPEC+ frames supply hikes as demand-driven, Saudi Arabia’s aggressive pricing hints at underlying market pressures, including rivalry with non-OPEC+ producers and efforts to lock in Asian buyers.
Saudi Arabia Slashes Oil Prices for Asia to Near 4-Year Low Amid OPEC+ Supply Surge