Saudi to reduce oil price for US and Europe in October

Saudi Arabia is to reduce oil prices to the United States and countries in north-west Europe in October, Bloomberg reported on Thursday.

Aramco has already reduced the price of light Arabic crude by $0.1 per barrel for US buyers, it said. The Saudi-American company also reduced the price of Arab medium and light crude oil by $0.5 per barrel for Asian buyers. According to Bloomberg, Aramco has cut oil production to 10.5 million barrels per day for the first time this year.

Global oil prices have dropped dramatically due to oversupply in the market since the summer of 2014. The Organisation of Petroleum Exporting Countries (OPEC) decided last November to keep its oil output levels unchanged, which led to a further collapse of crude oil prices.