Saudi Arabia has reduced the price of its main oil type for the Asian market amid signs of progress in negotiations to ease the situation regarding shipping through the strategically important Strait of Hormuz, although threats to transit through the Red Sea continue to persist. Bloomberg reports this.
The state-owned company Saudi Aramco will lower the price of Arab Light crude oil for Asian customers by 50 cents per barrel, bringing it to a level 2 dollars below the regional benchmark. This is reflected in the company's price list.
According to a Bloomberg survey, traders expected the Saudi producer to keep the price of its main oil type unchanged.
The global benchmark Brent oil price has fallen this week and is trading at around 80 dollars per barrel amid rising expectations that shipping volumes through the Strait of Hormuz may soon increase.
Iran has announced that an agreement with Oman regarding the shipping route through this crucial waterway is in the final stages. This could be an important step towards reopening the strait for energy supplies.
However, the final resolution of the situation remains uncertain, and Tehran has not assigned any role to the U.S. in this process.
After the war between the U.S. and Iran destabilized the oil markets and closed the Strait of Hormuz, the main maritime gateway to the Persian Gulf, Saudi Aramco quickly redirected a significant portion of its exports to the western coast of the country at the Yanbu port on the Red Sea.
The kingdom's east-west oil pipeline became the main route to reach global markets.
However, threats to shipping in the Red Sea from Houthi rebels also put this alternative route at risk.
