https://arab.news/47hm8
- Adjustment comes amid a drop in Brent crude prices, which have fallen to $71.49 per barrel
RIYADH: Saudi Aramco has reduced its October pricing for Arab Light crude oil for Asian buyers, according to a recent price list. The state-owned oil giant has cut the official selling price of its Arab Light crude by 70 cents, bringing it to $1.30 per barrel above the regional benchmark.
This adjustment comes amid a drop in Brent crude prices, which have fallen to $71.49 per barrel—a decrease of $1.20 per barrel (1.65 percent) on the day and the lowest level in years.
Saudi Aramco has also reduced the price of Arab Light crude for Europe and the US. For Europe and the Mediterranean, the Arab Light grade is priced $0.35 above ICE Brent, while for East Asia, the price is set at $1.30 above the average of the Oman and Dubai benchmarks.
The price cuts follow Bank of America's revised forecasts, which now predict Brent crude will average $75 per barrel next year, down from a previous estimate of $80. The forecast for West Texas Intermediate has also been lowered to $71 per barrel from $75.
It is also noteworthy that OPEC+ recently decided to postpone its planned production quota reductions scheduled for October. The new agreement will maintain current production levels for an additional two months.
Citigroup had previously warned that Brent crude could dip below $70 per barrel if OPEC+ proceeded with adding production to the market. However, the two-month delay in adjusting production levels has not significantly impacted prices.