- 05 Dec
Saudi Arabia lowers oil prices for US and Asia
According to the Wall Street Journal today, Saudi Arabia increased the oil prices discount to the US and Asia, showing a strong commitment to defend market share against US production. The US price dropped between $0.10 and $0.90 a barrel to the US, and between $1.50 and $1.90 a barrel to Asia.
As reported earlier, Saudi Arabia is expecting crude prices to settle at $60 a barrel. Kuwait announced yesterday the country is basing their 2014-2015 budget on barrel prices of $55-$60 a barrel. Depending on the expert you read, that is anywhere from just at break even to $16 a barrel below break even.
At the time of this writing, global crude prices are slightly lower.