Saudi Aramco Slashes Oil Prices For October Shipments To Asia And US As Oil Demand Remains Low Globally
Saudi Aramco Slashes Oil Prices For October Shipments To Asia And US As Oil Demand Remains Low GloballyAn oil refinery 

With global oil demand remaining low due to the COVID-19 pandemic flare-ups across the globe, the world's largest crude oil exporter, Saudi Arabia has slashed the pricing for oil sales for the coming month of October, reports Mint.

The Arab country’s state-owned oil company Saudi Aramco has cut the prices of its key Arab light grade of crude by a more than expected amount for shipments to Asia which forms its main market. The Saudi Arabian oil giant has also slashed the prices for its buyers in the United States (US).

Arab light grade has now been priced at a discount to the benchmark oil price for the first time since June. Also, this marks the second consecutive month of price cuts for oil shipments to Asia, and first in six months when prices have been cut for US buyers. Aramco will also be cutting the prices for the lighter grade of oil sold to northwest Europe and the Mediterranean region.

It should be noted that despite doubling from the lowest that the prices had hit earlier this year, crude oil prices remain around 35 per cent down this year.

Oil demand has plunged throughout the world because the Covid-19 pandemic has forced governments to lock down economies.

Saudi Arabia is known to usually set the tone for pricing decisions by the other Middle Eastern nations which are known to be major oil-exporting countries. These include Iraq and the United Arab Emirates (UAE), which form the second and third-largest oil-exporting nations on the planet.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber