Saudi Aramco has decreased prices for all its oil to Asia next month, marking the first reduction since February, reflecting concerns about demand in its largest market.
Saudi Aramco is a Saudi Arabian multinational petroleum and natural gas company. It’s one of the world’s largest oil producers and is considered the most valuable company in the world by market capitalization.
The reduction in prices follows a recent agreement among certain OPEC+ members, including Saudi Arabia, to gradually ease their voluntary supply cuts beginning in October. This decision contributed to a decline in benchmark crude prices, raising concerns about weakening demand growth.
OPEC+ refers to the alliance between the Organization of the Petroleum Exporting Countries (OPEC) and a group of non-OPEC oil-producing countries, most notably Russia. Together, they collaborate on oil production policies to stabilize oil prices and manage the global oil supply.
In another development, OPEC+’s recent move to boost oil production could greatly affect the forthcoming US elections, especially for President Joe Biden.
This decision could sway voters directly by stabilizing prices and reducing gasoline expenses, as there’s a clear connection between fuel costs and consumer budgets, potentially affecting public approval of the current administration.