Saudi Arabia Cuts Oil Prices Amid OPEC Price War
October 04 2015 - 9:10PM
Dow Jones News
Saudi Arabia on Sunday made deep reductions to the prices it
charges for its oil, hard on the heels of cuts last month by rival
producers in the Gulf.
With U.S. production still increasing despite lower oil prices,
members of the Organization of the Petroleum Exporting Countries
are battling to keep their share of the last growing markets in
Asia.
In a list of official prices sent to customers, state-oil
company Saudi Aramco cut the price of its light-crude deliveries to
Asia by $1.7 a barrel. As a result, it switched to a discount of
$1.6 a barrel against the rival Dubai benchmark from a premium of
10 cents a barrel previously. The company also cut its prices for
heavy oil by $2 a barrel to the Far East and by 30 cents a barrel
to the U.S.
The move come as Iran, Iraq and other countries in the Middie
East made deeper cuts in their official prices than Saudi Arabia
last month.
Saudi Arabia has vowed to keep pumping at high levels as it
hopes lower oil prices will stimulate Asian demand and hit rival
production in the U.S. that is expensive to produce. But while
Chinese economic growth is slowing, U.S. production rose by about
68,000 barrels a day in July, according to the U.S. Energy
Information Administration.
Write to Benoit Faucon at benoit.faucon@wsj.com
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(END) Dow Jones Newswires
October 04, 2015 20:55 ET (00:55 GMT)
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