Saudi Arabia has decided to reduce the official selling price of oil for August for the Asia and the USA.
As reported by Asharq Al-Awsat with reference to the state oil company Saudi Aramco, in the key Asian market the most common Arab Light grade will sell for 40 cents less than in July.
Within four months, Saudi Aramco raised prices, citing growing demand. However, in the third quarter, the Asian market will also see a decline due to the fact that a number of refineries will take to prevent and reduce purchases.
Meanwhile, Riyadh has expanded capacity field “sheyba” by 33%, and in July, Saudi Aramco had additional volumes, which had to be sold at a discount, Reuters reports. Supplies from Saudi Arabia jumped by 10%, and as a result prices fell for the whole range sold in Asia varieties. Murban from the UAE in August is sold cheaper than the official prices, and margin of the Russian ESPO oil fell below $2 for the first time in 8 months.
One of the traders said that Saudi Arabia, unhappy with the situation on the market in Asia. In may, Saudi Aramco, fell back to third place on deliveries of oil to China, behind Russia (3,92 million tons) and Angola (3,28 million tons). Rosneft, meanwhile, four months in a row bypasses Riyadh for the supply in the PRC.
On Monday it was reported that world oil prices continue to rise. This came after comments by Minister of energy, industry and mineral resources Saudi Arabia Khalid al-falikha that the market of “black gold” is on the way to equilibrium, however, the slowdown in demand in Asia continues.
