Aramco cut oil prices to Asia for July
First reduction since February comes amid concerns on strength of demand in top market
Saudi Aramco lowered prices for all of its oil to Asia next month, the first reduction since February, amid concerns over the strength of demand in its biggest market.
The price cut comes days after some OPEC+ members, including Saudi Arabia, agreed to gradually roll back their voluntary supply cutbacks starting in October. Benchmark crude slumped in the aftermath as the decision added to concerns over softer demand growth.
Aramco will reduce the price of its flagship Arab Light crude by 50 cents to $2.40 a barrel above the regional benchmark, according to a pricing sheet seen by Bloomberg. The company had been expected to lower the official selling price by 40 cents, according to a survey.
The OPEC+ decision coincided with a Saudi government offer to sell about $12 billion in Aramco shares. The company is running the offering this week, pitching to investors and taking orders for the stock as the government looks to raise cash to support ambitious spending programs meant to diversify the economy.
Saudi Arabia is the biggest producer in the Organization of Petroleum Exporting Countries and its de facto leader.