Summary
- Saudi Arabia’s state-owned oil company Aramco sharply lowered crude selling prices for Asia.
- As a result, Brent crude and WTI each fell about 2%, leaving international oil prices under pressure.
- Price competition among Gulf oil producers to secure market share in Asia, along with rising Middle East crude supply, is adding downward pressure on oil prices.
Saudi Aramco, Saudi Arabia’s state-owned oil company, cut crude selling prices for Asia by more than expected, pressuring international oil prices.
BlockBeats, a cryptocurrency-focused media outlet, reported on October 6 that Brent crude fell more than 2% intraday to $97.45 a barrel. West Texas Intermediate also dropped about 2% to $86.81 a barrel.
Aramco lowered the official selling price of its benchmark crude for Asia to the lowest level in six years. The move points to intensifying price competition among Gulf oil producers, including Saudi Arabia, as they seek to secure market share in Asia.
An increase in crude shipments through the Strait of Hormuz has also added downward pressure on prices. As Middle East supply rises and competition among producers intensifies, some supply concerns appear to have eased.
