Saudi Arabia oil price to Asia cut to 10-month low
Saudi Aramco signals no let up in battle for market share with rival Iran
Updated : 17:31
The world's largest oil exporter Saudi Aramco has lowered the price to its Asian markets for its Arab Light crude by the most in 10 months.
The move appears to represent the Saudis' intent to battle for market share against their rival in the OPEC group, Iran.
Saudi Arabian Oil Co. was expected to lower the pricing by $1 per barrel, but in September it would proceed to lower it to $1.10 below the Asian regional benchmark. It marked the biggest price reduction since November, according to Bloomberg statistics and was $1.30 less than the price set for August.
The price drop was the latest in an ongoing battle with the Iranians for market share in Asia, after they boosted their crude production by 25% this year.
“The market share battle between them and Iran is back on in a big way,” John Kilduff, partner at Again Capital LLC in New York, told Bloomberg.
Iran moved back to third place among the biggest producers of oil in the OPEC after international sanctions against the country were lifted in January of this year.
All the other official selling prices for Asian markets were also reduced with the biggest cut being $1.60 for Extra Light crude.
As of 17:36 BST front month Brent crude oil futures were skidding 3.520% lower to $42.05 alongside a drop of 3.89% to $40.04 for West Texas Intermediate.