Saudi Arabia slashes AugustSaudi Arabia slashes August crude prices for Asia
Saudi Arabia cut its August crude prices for Asian buyers by $11 a barrel, the biggest reduction in more than 20 years, according to reports published on Monday.
The move comes as Gulf producers such as Saudi Arabia, Iraq and Kuwait are expected to raise output through the Strait of Hormuz, a shift that could increase global supply and sharpen competition for market share in Asia.
Saudi and Gulf producers
Saudi Arabia reduced its August crude prices for Asian buyers to stay competitive as regional supply improves. The move is aimed at protecting market share in a market where refiners can choose among several Gulf suppliers.
Asian refiners
Asian buyers are likely to see cheaper crude offers as Gulf exporters raise output and compete more aggressively. That could ease import costs for refiners, while putting pressure on other suppliers selling into the same market.
- Saudi Arabia’s oil pricing often sets the tone for the wider Gulf export market.
- The Strait of Hormuz carries a large share of seaborne oil trade worldwide.
- Asia is the world’s largest oil-importing region.
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