Saudi Arabia reduced the price of its main crude grade for Asian customers in August by the largest amount in at least 26 years amid rising global supply and fiercer competition for buyers. State-owned Saudi Aramco lowered the August price of Arab Light crude to Asia by $11 a barrel, setting it at a $1.50 discount to the regional benchmark, according to a price list obtained by Bloomberg. The reduction exceeded the $8 decline anticipated in a Bloomberg survey. Crude prices have fallen sharply since mid-June following an agreement between the US and Iran to end hostilities and reopen traffic through the Strait of Hormuz. Brent crude has dropped to around $72 a barrel, matching levels seen at the end of February. Middle Eastern grades have weakened as an expected increase in regional supply risks overwhelming Asian refiners. Aramco had raised shipments to roughly 90 percent of pre-conflict volumes after restarting exports from Ras Tanura. Prior to the conflict, that port served as the primary loading site for Saudi exports, but most flows were redirected to the Red Sea terminal at Yanbu while Hormuz remained effectively closed.
