Top oil exporter Saudi Arabia has cut the price for the flagship Arab light crude it sells to Asia in August to $1.80 a barrel above the Oman/Dubai average, Saudi Aramco said in a statement on Thursday.

That is down 60 cents from the July price of Oman/Dubai plus $2.40 a barrel. The drop is broadly in line with expectations, as sources at Asian refineries had said the price may fall by 60 cents to 80 cents.

The price reduction for Asia, which accounts for about 80% of Saudi’s oil exports, underscores the pressure faced by OPEC producers as non-OPEC supply continues to grow while the global economy faces headwinds.

Aramco sets its crude prices based on recommendations from customers and after calculating the change in the value of its oil over the past month, based on yields and product prices.

Saudi crude OSPs set the trend for Iranian, Kuwaiti and Iraqi prices, affecting about 9 million barrels per day (bpd) of crude bound for Asia.
Source: Reuters (Reporting by Alex Lawler; Editing by Susan Fenton and David Evans)