Saudi Aramco has announced a dramatic reduction in its official selling prices for crude oil destined for Asian buyers in August, cutting the price of its Arab Light blend by $11 per barrel.
The move represents the steepest discount offered by the kingdom’s national oil company in recent history, marking a decisive shift in pricing strategy as global benchmarks retreat.
The aggressive price cut underscores Riyadh’s priority to maintain export volumes despite a challenging demand environment.
Saudi Arabia’s crude oil exports fell for a second consecutive month in April, reaching a record low according to data from the Joint Organizations Data Initiative (JODI).
This decline coincides with the kingdom maintaining production cuts, suggesting that volume losses have outpaced the intended market stabilization effects of OPEC+ agreements.
The new August pricing aims to incentivize refiners in Asia, particularly in China and India, to increase their intake of Saudi crude over competing sources.
This pricing adjustment comes as global crude oil benchmarks retreat to levels seen before the outbreak of the Iran war in February.