Saudi Arabia Cuts Oil Prices for Asia Amid Demand Uncertainties

By Giulia Petroni

Top oil exporter Saudi Arabia cut prices for all crude grades it sells to Asian customers amid mounting uncertainties over demand and sinking oil prices.

State-owned oil giant Saudi Arabian Oil Co., known as Aramco, set its official selling price for October loadings of its flagship Arab Light crude to Asia--its main market--at $1.30 a barrel over the Oman/Dubai average, from $2 a barrel in September. Prices for other lighter and heavier crude grades were lowered as well.

The oil producer also cut its October prices for all grades for customers in northwest Europe, the U.S. and the Mediterranean.

Crude futures dropped to nine-month lows this week amid concerns over the global demand outlook and prospects of an oversupplied market next week. The Organization of the Petroleum Exporting countries and its allies on Thursday decided to delay their planned production hikes by two months, but the move failed to support prices.

Brent crude, the international oil benchmark, currently trades 2.2% lower at $71.07 a barrel, while the U.S. oil gauge West Texas Intermediate is down 2.3% to $67.54 a barrel.

Write to Giulia Petroni at giulia.petroni@wsj.com

(END) Dow Jones Newswires

September 06, 2024 12:15 ET (16:15 GMT)

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