Saudi Aramco has cut pricing for its November oil sales to Asia and the US, according to a report by Bloomberg.
The price reduction by the world’s largest crude exporter is an apparent move to maintain its competitiveness with rival suppliers to the Asian and the US markets, amid low demand.
Aramco reduced its official selling price for Medium grade crude to Asia next month to a discount of $3.20 a barrel below the regional benchmark, compared with a $1.30 discount for October sales, the company said in a statement on Sunday.
The discount for the Medium grade to Asia, a crucial Saudi export market, widened by the most since the state-owned company made a $2 a barrel cut in February 2012, according to data compiled by Bloomberg.
Brent crude, a global benchmark, tumbled almost 50% last year, and is currently trading at around $46 per barrel.
Meanwhile, Saudi Arabia’s Oil Minister Ali Al Nuaimi has asserted that the Kingdom will continue investing in oil production even amid the low prices.
“Volatile oil prices affect investments, creating a situation that’s not good for producers or consumers,” he said in a speech in Istanbul, in comments reported by the official Saudi Press Agency last week.
