Saudi Arabia cuts oil prices for Asia for second straight month

Top oil exporter Saudi Arabia cut prices for all crude grades it sells to Asian customers for a second month in a row in August amid robust supply from countries outside OPEC and uncertainties over the demand outlook. State-owned oil giant Saudi Arabian Oil Co., known as Aramco, set its official selling price for August loadings of its flagship Arab Light crude to Asia–its main market–at $1.80 a barrel over the Oman/Dubai average, from $2.40 a barrel in July. Prices for other lighter and heavier crude grades were also lowered. Looking at other importing regions, the oil producer instead increased its August prices for all grades for customers in northwest Europe and the Mediterranean. In the U.S., Aramco raised the price for its Extra Light and Light grades by 10 cents versus the Argus Sour Crude Index and left prices for its Medium and Heavy grades unchanged.

Crude prices climbed to a two-month high this week, boosted by signs of a tightening market over the summer due to the extension of the Organisation of the Petroleum Exporting countries and its allies’ supply curbs and expectations of strong demand during the traveling season.

Prices are also gaining support from escalating geopolitical risks in the Middle East and Eastern Europe, as well as renewed hopes for a September rate cut by the U.S. central bank. At 1600 GMT, Brent crude trades 0.2% higher at $87.50 a barrel and WTI rises 0.1% to $83.94 a barrel.