(Bloomberg) -- Saudi Arabia cut pricing for August sales of its light oil grade to Asia as the world’s biggest crude exporter is increasing production to assure buyers there is sufficient supply following U.S. President Donald Trump’s demands that OPEC do more to stabilize oil markets.
Oil extended losses after state-owned Saudi Arabian Oil Co. cut most pricing for Asian, European and U.S. markets. The company, known as Saudi Aramco, cut its official selling prices for Arab Light crude to buyers in Asia to $1.90 a barrel above the Middle East benchmark, the company said Thursday in an emailed price list. The 20-cent reduction was the first cut in four months from the highest since July 2014 and matched expectations of four traders in a Bloomberg survey.
“REDUCE PRICING NOW!,” Trump tweeted on Wednesday, demanding that the Organization of Petroleum Exporting Countries do more to help reduce U.S. gasoline costs. Trump said Sunday that OPEC should put another 2 million barrels on the market to make up for the coming shortfall in Iranian crude sales due to sanctions.
The producers’ group and partners agreed on June 23 to increase oil production, with the Saudi and Russian energy ministers saying it would add about 1 million barrels a day to the market. Brent crude rose 5.2 percent in the first week after that agreement as production losses in Libya and Venezuela and the prospect of lower Iranian exports more than made up for promises of more Saudi crude. The global benchmark slipped 23 cents, or 0.3 percent, to $78.01 a barrel at 2:05 p.m. in London.
(Adds Brent crude prices in second, fourth paragraph.)