By Giulia Petroni
Top oil exporter Saudi Arabia cut the July price for its flagship Arab Light crude to Asian customers after three consecutive raises amid uncertainties over demand and robust supply from countries outside OPEC.
State-owned oil giant Saudi Arabian Oil Co., known as Aramco, set its official selling price for July loadings of Arab Light to Asia at $2.40 a barrel over the Oman/Dubai average, from $2.90 a barrel in June. Prices for other lighter and heavier crude grades to Asia were also lowered.
The price is considered a barometer for how the kingdom sees the demand outlook.
Looking at other importing regions, the oil producer increased its July prices for all grades for customers in northwest Europe and the Mediterranean, but left prices unchanged for the U.S.
Saudi Arabia and other OPEC+ members last week agreed to extend all production curbs into 2025 and outlined a plan to gradually phase out voluntary cuts of 2.2 million barrels a day from October 2024 to September 2025. The move was seen as bearish by the market, sparking an oil selloff.
Crude prices slightly rebounded on Thursday after plunging to four-month lows. At 0727 GMT, Brent crude is up 0.7% at $78.93 a barrel and WTI rises 0.8% to $74.65 a barrel.
Write to Giulia Petroni at giulia.petroni@wsj.com
(END) Dow Jones Newswires
06-06-24 0347ET
