Saudi Aramco has reduced its October pricing for Arab Light crude oil for Asian buyers, as indicated by a recent price list. The state-owned oil company has decreased the official selling price of Arab Light crude by 70 cents, setting it at $1.30 per barrel above the regional benchmark.
This adjustment comes amid a drop in Brent crude prices, which have fallen to $71.49 per barrel a decrease of $1.20 per barrel (1.65 percent) on the day and the lowest level in years.
Saudi Aramco has lowered the price of Arab Light crude for both Europe and the US. For Europe and the Mediterranean, Arab Light is priced $0.35 above ICE Brent, whereas for East Asia, it is set at $1.30 above the average of the Oman and Dubai benchmarks.
Bank of America
The recent price reductions come in response to Bank of America‘s updated forecasts. The bank now expects Brent crude to average $75 per barrel next year, down from an earlier estimate of $80. Similarly, the forecast for West Texas Intermediate has been revised to $71 per barrel, previously $75.
It’s also worth noting that OPEC+ has recently opted to delay its planned production quota reductions for October. The updated agreement will extend the current production levels for an additional two months.
Citigroup had earlier cautioned that Brent crude prices might fall below $70 per barrel if OPEC+ decides to increase production. However, the two-month postponement in adjusting production levels has not had a major effect on prices.
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