Top oil exporter Saudi Arabia has cut the price for October loadings of the flagship Arab light crude it sells to Asia to $1.30 a barrel above the Oman/Dubai average, Saudi Aramco said in a statement.

That is down 70 cents from the September price of Oman/Dubai plus $2.00 a barrel. The drop is broadly in line with expectations, as sources at Asian refineries had said the price was expected to fall between 50 cents and 70 cents a barrel.

Arab heavy crude prices for Asia had a deeper reduction of $1.00 a barrel, with demand set to taper off following the conclusion of peak summer fuel oil consumption.

The producer lowered prices for other light grades sold to Asia, while also lowering Arab Medium and Arab Heavy crude prices.

The price cut for Asia, which makes up around 80% of Saudi Arabia’s oil exports, follows reports that OPEC+ has agreed to delay a planned oil output increase for October and November.

This decision comes after crude prices hit a nine-month low, with the group also indicating it may further pause or even reverse the hikes if necessary.

Meanwhile, Saudi Arabia cut prices for other regions, with reductions of 80 cents a barrel across all of its crude grades for Northwest Europe and the Mediterranean.
Source: Reuters (Reporting by Swati Verma and Sherin Elizabeth Varghese in Bengaluru, Editing by Matthew Lewis)