Saudi Arabia has announced deeper reductions in the prices for the country’s oil in an attempt to preserve and expand its share in the global energy market. In the official price list sent to its customers by the state-owned oil company, Saudi Aramco, the price of light-crude deliveries to Asia was reduced by $1.7 per barrel, according to The Wall Street Journal. Saudi Aramco is the primary supplier of oil from Saudi Arabia.
Therefore, the crude oil delivered from Saudi Arabia will now cost $1.6 less than the “black gold” produced in the Emirate of Dubai. Until now, the Saudi oil was worth 10 cents more than the benchmark from Dubai. Saudi Aramco also lowered its prices for heavy oil which is supplied to the Far East countries. The reduction is equivalent to $2 off each barrel. For customers from the United States, the Saudi Arabian oil now costs 30 cents less.
The Wall Street Journal attributes this move to the fact that the Saudi state oil company is willing to expand its economic presence on the global oil market.
