Saudi cuts Arab Light crude price for Asia by $11

Saudi Arabia has sharply reduced the price of its crude oil for Asian buyers, marking its largest monthly cut in decades and selling its main grade at a discount for the first time since 2020. The state producer, Saudi Aramco, lowered the official selling price for its flagship Arab Light crude for August delivery by $11 per barrel, setting it at $1.50 below the regional Dubai-Oman benchmark. The move, announced on Monday, reflects intense competition among Gulf producers amid a surge in global supply and weakened Asian demand.

The price reduction follows an interim agreement between the United States and Iran in mid-June, which included a 60-day sanctions waiver and has allowed a significant increase in oil shipments through the Strait of Hormuz. This key chokepoint, which handles a fifth of global oil supplies, had been largely blocked during recent hostilities, pushing prices to record highs in May. With the easing of tensions, a flood of previously trapped barrels, including Iranian crude, is now entering the market, shifting power to buyers.

Analysts noted that despite the deep cut, Saudi crude remains more expensive for Asian refiners than spot supplies from other regional...