Saudi Arabia cuts Asia oil prices as energy market weakens

Saudi Arabia cuts Asia oil prices as energy market weakens

A softening US economy and continued fragility among its banks, as well as weak manufacturing data in China, have triggered a renewed fall in Brent and WTI futures. Refining margins have also sunk.





May 05, 2023 / 11:59 AM IST





Saudi Arabia cuts Asia oil prices as energy market weakens



Saudi Arabia lowered oil prices for customers in its main market of Asia after futures slumped, with traders fretting about the health of the global economy.

A softening US economy and continued fragility among its banks, as well as weak manufacturing data in China, have triggered a renewed fall in Brent and WTI futures. Refining margins have also sunk.

State-controlled Saudi Aramco cut all official selling prices for Asia in June. The company’s key Arab Light grade was reduced to $2.55 a barrel above the regional benchmark, 25 cents less than the price for this month.

A Bloomberg survey of refiners and traders from last week forecasted a slightly bigger drop of 45 cents.

Aramco sells about 60% of its crude shipments to Asia, most of them under long-term contracts, pricing for which is reviewed each month. China, Japan, South Korea and India are the biggest buyers.

The company raised all prices