Saudi Aramco, the world's largest oil exporter, has lowered pricing terms for Arab Light crude sold to Asia by the most in 10 months. This is a signal Saudi Arabia does not plan to back down while OPEC rival Iran attempts to regain market share amid a global oversupply, according to Bloomberg.
Saudi Aramco plans to sell cargoes of Arab Light at $1.10 a barrel below Asia's regional benchmark in September. This is a $1.30 pricing cut from this month and the biggest price drop since November, according to Bloomberg.
Iran had had a 25 percent increase in crude production this year. By the end of the year, Iran hopes to reach an eight-year high for daily output of 4 million barrels. Customers in Asia account for the largest portion of new sales for Iran, according to shipping data compiled by Bloomberg.
“The market share battle between [Saudi Arabia] and Iran is back on in a big way,” John Kilduff, partner at Again Capital LLC in New York, told Bloomberg. “This is a throwdown challenge that I’m sure the Iranians will match.”
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