The COVID-19 pandemic has forced Saudi Arabia, the world’s largest crude oil exporter to slash its price. The demand for oil is still very low and the Saudi state-owned Aramco has cut the price for oil sales for the coming month of October, reports Mint.
Saudi Arabia is the worlds largest oil producer and it will sell its Arab Light grade crude at a lesser price to Asia which forms its main market and for its buyers in the United States (US). Aramco will also be cutting the prices for the lighter grade of oil sold to northwest Europe and the Mediterranean region.
Saudi Arabia for a long time dictated the price of oil in the middle east but COVID-19 has caused a serious problem for the Saudi economy and despite doubling from the lowest that the prices had hit earlier this year, still, crude oil prices are down 35 per this year.
As most countries are still in a state of lockdown, demand for oil remains low including big economies like India.