Saudi Arabia Cuts Oil Prices Amid OPEC Price War

[Lucky Luciano]

Source: WSJ

Saudi Arabia on Sunday made deep reductions to the prices it charges for its oil, hard on the heels of cuts last month by rival producers in the Gulf.

With U.S. production still increasing despite lower oil prices, members of the Organization of the Petroleum Exporting Countries are battling to keep their share of the last growing markets in Asia.

In a list of official prices sent to customers, state-oil company Saudi Aramco cut the price of its light-crude deliveries to Asia by $1.7 a barrel. As a result, it switched to a discount of $1.6 a barrel against the rival Dubai benchmark from a premium of 10 cents a barrel previously. The company also cut its prices for heavy oil by $2 a barrel to the Far East and by 30 cents a barrel to the U.S.

The move come as Iran, Iraq and other countries in the Middie East made deeper cuts in their official prices than Saudi Arabia last month.

Saudi Arabia has vowed to keep pumping at high levels as it hopes lower oil prices will stimulate Asian demand and hit rival production in the U.S. that is expensive to produce. But while Chinese economic growth is slowing, U.S. production rose by about 68,000 barrels a day in July, according to the U.S. Energy Information Administration.

Read more: http://www.wsj.com/articles/saudi-arabia-cuts-oil-prices-amid-opec-price-war-1443967741

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Apparently this cut is the second largest cut in percentage terms the Saudis ever made in one go. Bearish crude.

[Fred Sanders]

1. No mention of the billions upon billions being spent to create regime change in Yemen not to mention

to quell a growing internal dissatisfaction with the results of the regime change recently in Saudi and untold billions for the "rebels" and terrorists in Syria?

[Wellstone ruled]

2. Wow! You could see this coming.

Just a matter of time. Saudi's have huge money problems servicing their debt as well funding their ISIL Pals and other anti Iran operations. Part two is the Saudi's want to regain any and all of their lost Oil Sales as the result of the U.S. Shale production. Subtle shot at the U.S.President and our Military Operations in the Mid East. Saudi's are not a U.S. friend.

[MJJP21]

3. Really?

I think you have faulty info. As much as I am not a fan of the Saudis they don't support ISIL. As for your claim of regaining lost oil sales that too is not on the mark. The Saudis are showing support for the US by keeping prices low and lowering them more in order to HURT Russia first and Iran second. This is a contest of who can hold their breath the longest. Both of those countries use oil to run their countrys and neither Russia or Iran are getting enough to maintain the status quo. The Russian people still support Putin but when they start standing in line for bread things might start to change. Iran grabbed a lifeline when the nuke treaty was signed allowing them to sell their oil on the open market albeit at low prices.

[Wellstone ruled]

4. Thanks for the

feed back. Appears to be more moving parts than we first expected,meaning the Saudi's are in full out push to be the Regions number one Influence,and that is not going to happen. Their internal issues will determine the day. Putin is in a no win game here,unless he and someone else are playing three dimensional chess.

[Lucky Luciano]

5. It is absolutely an attack on the US shale oil business as well.

They have said that out loud many times - ever since last Novemeber when OPEC didn't cut production in the face of plunging prices. They expressed directly that they wanted to crush the shale oil producers - and they are making a significant impact there. Just check the high yield bonds of our shale oil producers - getting smoked.

[jaysunb]

6. Not to mention that, Iran will be flooding the market

with sanctions being lifted.

Thanks President Obama and the other powers that brokered this deal.

[roamer65]

7. They'll be right back up when direct conflict breaks out in the ME.

It's not far away.

[brush]

8. When? When did it stop?