The Strategist

Saudi Aramco lowers June oil prices for EU and Asia

05/09/2022 - 04:11

Saudi state-owned oil and gas company Saudi Aramco has cut crude oil prices for Asia and the European Union by 50% or more for June compared with the month of May, leaving them at the level of May for the United States, Reuters reported, citing an Aramco report.

Jonathan Cutrer
Jonathan Cutrer
"Saudi Aramco cut by more than 50 percent the official selling price of Arab Light crude for June for northwestern Europe to about $2.10 a barrel premium to Brent on the Intercontinental exchange network, down from $4.6 a barrel in May. At the same time Saudi Aramco left the selling price for oil supplies to the USA in June at the level of May, the premium for oil grades in the basis of the international price agency Argus will make 5.56 dollars per barrel," the message reads.

In addition, according to the report, Saudi Aramco has reduced by almost 50% the official selling price of crude oil to be delivered to Asia, including "the selling price of Arab Light grade for Asian consumers will decrease by about $4.4 per barrel compared to the exceeding Oman/Dubai basket of grades price of $9.35 per barrel in May."

The company attributes the decline in oil prices for Asia to a drop in demand for hydrocarbons in that region amid a new outbreak of coronavirus in China and city closures for that reason.

In May, the Saudi company increased selling prices for oil to customers in the EU, the U.S. and Asia.