Business | Oil & Gas
Saudi Aramco cuts light crude prices for US
Saudi Aramco, the world's largest state oil company, cut its official selling prices for light crude shipments to the US in August.
- Bloomberg
- Published: 00:09 July 8, 2008
Dubai: Saudi Aramco, the world's largest state oil company, cut its official selling prices for light crude shipments to the US in August.
Aramco reduced the price of Extra Light crude by $2.30 to a premium of 10 cents a barrel above the West Texas Intermediate benchmark, compared with $2.40 in July, the Dhahran, Saudi Arabia-based company said on Monday in a faxed statement.
Aramco also cut the price of its Arab Light crude by 55 cents to a discount of $3 a barrel to the US benchmark, the company said.
Light crude oil is favoured by US refiners for its high gasoline yield compared with heavy crude. The company narrowed its discounts for Arab Medium and Arab Heavy by 90 cents to $7.40 a barrel and by $2.20 to $11.10 a barrel.
Aramco increased most of its crude prices to Europe, while cutting prices to Asian and the Mediterranean customers.
Saudi Arabia plans to raise crude production to a 9.7 million barrels a day in July, its third monthly increase.
Analysts including the London-based Centre for Global Energy Studies have said the kingdom may need to lower its prices to find sufficient buyers.
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