Saudi Arabia is lowering oil prices for Asia and Europe but is hiking them for most US buyers

The logo of Aramco is seen as security personnel stand before the start of a press conference by Aramco at the Plaza Conference Center in Dhahran, Saudi Arabia November 3, 2019.Hamad I Mohammed/Reuters

• Saudi Arabia is lowering the price of its premier crude for buyers in Asia and Europe but hiking US prices.

• Saudi Aramco is reducing prices by $4 a barrel for Asian refineries and by $2 for European customers.

• The state-run giant is raising prices by $0.50 for most US buyers but kept prices at current levels for its Arab Light barrels.

Saudi Arabia is lowering prices for crude oil being shipped to Asia and Europe next month, but raising prices for most other barrels sent to the US.

Asian refiners will pay about $4 per barrel less in October compared to September deliveries, while shipments to northern Europe and the Mediterranean will be about $2 per barrel lower.

The pullback in prices is the first cut in prices in roughly four months and was largely expected as the price of Brent crude oil has fallen in recent months.

Meanwhile, US buyers will pay about $0.50 more for Saudi oil, while the price for its Arab light crude will remain unchanged.

Saudi Arabia's latest pricing moves come as global oil markets remain extremely tight despite somewhat faltering demand. On Monday, OPEC+ said the group would cut production for October by 100,000 barrels per day. Saudi Arabia's Energy Minister Prince Abdulaziz bin Salman has previously asserted that global energy markets remain "in a state of schizophrenia."

After rallying Monday on the OPEC+ output cut, oil prices slipped Tuesday amid recession fears. Brent crude fell 3.2% to $96.22 a barrel, and West Texas Intermediate dipped  0.2% to $86.69 a barrel.

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