With global oil demand staying low due to the coronavirus pandemic, the world's largest oil exporter, Saudi Arabia, has cut its crude prices for the US and Asian delivery. The worsening situation in the energy market became the main reason for the Saudis to slash the crude prices. Thus, state oil producer Saudi Aramco decreased December prices for its Arab Light crude for Asian shipment by 10 cents a barrel. For US customers, the price was reduced by 20 cents. At the same time, Saudi Aramco raised oil prices by as much as $1 per barrel for European buyers. Saudi Arabia’s pricing decision may seem inconsistent, as major EU countries are introducing lockdowns and the European market is likely to reduce oil consumption in the months to come. Recently, Saudi Aramco, the world’s richest oil company, has reported a twofold drop in its third-quarter net profit to $11.78 billion. The company’s free cash flow has decreased 1.7 times.
