RIYADH: Saudi Arabia has announced a sharp reduction in the price of its flagship Arab Light crude for Asian buyers, following improved oil supply conditions and the reopening of the Strait of Hormuz after a ceasefire between the United States and Iran.
Saudi Aramco cut the official selling price of Arab Light crude for August deliveries by $11 per barrel, setting it at a $1.50 per barrel discount to the Oman/Dubai benchmark. The move marks the largest monthly price reduction in 26 years.
The price cut comes as oil exports from the Gulf region recover with the resumption of tanker traffic through the Strait of Hormuz, a key global energy corridor that carries around one-fifth of the world’s oil and gas shipments.
Global oil markets had experienced sharp volatility in recent months due to the conflict involving Iran, the United States and Israel, with concerns over disruptions to energy supplies pushing prices higher.
Supply conditions have since improved following the ceasefire, while Saudi oil exports have returned close to pre-conflict levels. OPEC+ has also approved an increase in oil production for August, further boosting global supply.
The lower prices are expected to benefit major Asian oil-importing countries, including Pakistan, China, India, Japan and South Korea, by reducing fuel import costs and easing inflationary pressures if current market conditions persist.
Brent crude was trading at around $72 per barrel, while U.S. benchmark West Texas Intermediate (WTI) stood near $69 per barrel, significantly below the highs recorded during the regional conflict.
