Gulf oil producers cut prices as Asia demand weakens

• Saudi Arabia cut crude prices for Asian buyers by as much as $11 per barrel as Gulf producers compete for demand.
• Lower prices reflect weaker Asian demand, especially from China, and increased availability of Iranian crude.
• Analysts said the market has shifted toward buyers as exporters compete to sell available barrels.

Saudi Arabia and other Gulf oil producers have reduced crude prices for Asian buyers as exporters compete for market share amid weaker demand and increased supply availability.

Saudi Arabia cut its official selling prices for Asian customers by as much as $11 per barrel, with its flagship Arab Light crude trading at a $1.50 discount to the Dubai/Oman average.

Analysts said weaker Asian demand, particularly from China, and the return of Iranian crude exports have increased competition among Middle Eastern suppliers.

Vortexa analyst Emma Li said competing Middle Eastern spot grades were already trading at deeper discounts before Saudi Arabia’s latest price reduction.

Iran has increased crude exports after the United States and Iran agreed to a 60-day negotiation period during which sanctions restrictions on Iranian oil were eased.

Saudi crude prices had reached record levels in May as Strait of Hormuz disruptions affected regional oil flows, but prices have since declined as supply competition increased.