Aramco Cuts Pricing for Oil Sales to Asia as Glut Persists - Bloomberg

Aramco Cuts Pricing for Oil Sales to Asia as Glut Persists - Bloomberg:

"Saudi Arabia, the world’s largest crude exporter, cut pricing for November oil sales to Asia and Northwest Europe and for most grades to other regions amid a global supply glut.
State-owned Saudi Arabian Oil Co., known as Saudi Aramco, lowered its official pricing for Arab Light crude to Asia by 25 cents a barrel to 45 cents less than the regional benchmark, it said Wednesday in an e-mailed statement. The company had been expected to widen the discount for shipments of Arab Light by 30 cents a barrel, to 50 cents less than the benchmark for buyers in Asia, according to the median estimate in a Bloomberg survey of six refiners and traders.
OPEC last week agreed to trim oil production for the first time in eight years after prices dropped to about half their levels in 2014. The decision meant the group abandoned a two-year-old, Saudi-led policy of letting members pump as much as possible to push higher-cost producers out of the market. That policy has contributed to a global supply glut, with output from Organization of Petroleum Exporting Countries reaching record highs.
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