Saudi Arabia hit oil prices once again


For the first time since February Saudi Arabia lowered prices for consumers in the U.S. and Asia. After that, the price for Brent oil fell below $50 per barrel.

All previous months Riyadh was only raising prices.

Lowering prices in Asia was 40 cents a barrel. This was not surprising, since Saudi Arabia believes the Asian market is the key, although it lost its leadership in it. Now the first place is taken by Russia, and the second by Angola.

Note that the price in Asia is traditionally reduced in the third quarter, so the Saudis simply preparing for refineries’ maintenance season.

At the same time, Saudi Arabia has increased production volumes in June by about 70 thousand barrels per day. In addition, similar steps were made by Nigeria and Libya: they increased their production by 90 and 40 thousand barrels respectively.