SINGAPORE: Saudi Aramco has cut the September price for its Arab Light crude grade for Asian customers by $0.70 a barrel versus August to a premium of $1.20 a barrel to the Oman/Dubai average, the lowest in four months, according to industry sources and Reuters data.
The price reduction for September ranges from 40 cents a barrel for Arab Medium to 70 cents for light grades, they said.
The cuts were at the larger end of forecasts seen in a Reuters survey and tracked weakness in Middle East oil benchmark Dubai.
The price cuts may enable Saudi to sell more crude to Asia, a Singapore-based trader said.
Bigger price cuts had been expected for lighter grades in September as Gulf producers Saudi Arabia, Kuwait and the United Arab Emirates have increased light crude supplies to compensate for lost output from Venezuela, Iran and Libya.
The Organization of the Petroleum Exporting Countries and partners led by Russia agreed in June to increase output by 1 million barrels per day.
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