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Kuwait has become the second-largest OPEC member to cut its prices for Asia this month after Saudi Arabia cut its export prices for the first time in four months.
Per a Reuters report citing a Kuwaiti document, the exporter slashed Kuwait Export Crude prices for June oil deliveries to Asia by as much as $4.95 per barrel from the prior month to a $4.35 premium to the DME Oman and Platts Dubai benchmarks.
Kuwait also lowered the price of its Super Light Crude by $4.95 per barrel to $4.70 above the DME Oman and Platts Dubai benchmarks.
Kuwaiti oil prices had hit a record high in May, the report noted. However, it seems that the lockdowns in China are beginning to worry exporters, prompting them to adjust prices.
Saudi Aramco reduced its oil export prices for the first time in four months this week as China locks down cities with millions of residents in pursuit of its zero-Covid policy.
According to a Bloomberg report, Aramco cut the price for its Super Light for Asia by more than $5 per barrel ad the price for its Extra Light by $4.95 per barrel for June deliveries.
Crude oil prices for Europe were reduced more moderately by the Saudi state giant, by between $2 and $3 per barrel, Bloomberg also reported. Prices for exports to the United States remained unchanged from May.
Meanwhile, Kuwait is supporting the united front that OPEC+ is demonstrating to an increasingly oil-hungry world. Last week, the country's oil minister said the OPEC+ deal to add moderate amounts of oil to monthly production ensured market stability and balance.
This week, the opinion was echoed by the UAE's Suhail Al Mazrouei, who said, as quoted by Reuters, that the oil market is balanced and the price volatility comes from the fact that "some don't want to buy certain crudes and it takes time for traders to move from one market to another."
By Irina Slav for Oilprice.com
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Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.