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Saudi Aramco Cuts All Crude Prices to U.S. in August

Bloomberg -- July 5 (Bloomberg) -- Saudi Aramco, the world’s largest state-owned oil company, lowered its official selling prices for exports of all crude oil grades to the U.S. in August.

Saudi Arabia decreased the price of its heavy crude to all destinations, the company said in an e-mailed statement today. Aramco cut heavy crude prices to the U.S. the most, by 75 cents a barrel to $5.50 below the cost of West Texas Intermediate crude.

The price of extra light crude fell against WTI to the U.S, while Aramco increased extra light prices to Northwestern Europe, the Mediterranean and the Far East.

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Submitted Jul 05, 2009 By: TwoEyes

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REBA1055 Sophomore Author Ohio Posts:200 Points:274,060 Joined:Apr 2008	Message Posted: Jul 5, 2009 5:29:47 PM Ignore REBA1055 Report Abuse I guess you think the recession was because of gas prices well you are wrong, the Clinton Administration lifted some of the restrictions on the banking industry and they thought great we'll screw the American people and make great profits for the banks and namely the Presidents of the Banks, so then things got to slowing down and these banks who gave sub-prime loans started to default because of the restrictions being lifted and giving there employees big bonus so they went to the the US government and ask to be bailed out, well there employees still got the big bonuses people still lost there homes and some of us who are working to keep what we own or are buying got screwed. Now it didn't help that the oil companies lined there pockets with money while the rest of us struggled. This might help us but who knows until the get the rest of the banking and car industry straightened out the we wait. Just remember it's not over yet.
ramboTX Champion Author Dallas Posts:2,836 Points:551,940 Joined:Aug 2007	Message Posted: Jul 5, 2009 5:27:01 PM Ignore ramboTX Report Abuse they are afraid if prices remain too high. Alternative fuels would become a priority for other countries. They haven't amassed the wealth that they need to become a world power, yet.
subnuke Champion Author Atlanta Posts:1,475 Points:321,515 Joined:Sep 2008	Message Posted: Jul 5, 2009 5:26:23 PM Ignore subnuke Report Abuse Prices down 14 cents here from its high a couple of weeks ago.
GOLDWING2003 Champion Author California Posts:1,708 Points:418,685 Joined:Jun 2008	Message Posted: Jul 5, 2009 5:25:47 PM Ignore GOLDWING2003 Report Abuse The Kuwati's, just like the Saudi's, don't want it to be economically feasible for us to look for alternatives.
hoosierdaddyno1 All-Star Author Indiana Posts:773 Points:242,190 Joined:Oct 2008	Message Posted: Jul 5, 2009 5:21:38 PM Ignore hoosierdaddyno1 Report Abuse Sorry the recession is in your lap, if not caused by the crude price run up.
jjjleblanc All-Star Author Rochester Posts:986 Points:373,915 Joined:Jun 2008	Message Posted: Jul 5, 2009 5:19:14 PM Ignore jjjleblanc Report Abuse Production cuts and lowering prices. It'll be interesting to see OPEC's next move.
nozzle46 Champion Author Little Rock Posts:1,282 Points:388,825 Joined:Jul 2006	Message Posted: Jul 5, 2009 5:14:42 PM Ignore nozzle46 Report Abuse Not a great article. It would be helpful to know that it's harder to process heavy crude, therefore it is less desirable, not all refineries are set up for it.
GOLDWING2003 Champion Author California Posts:1,708 Points:418,685 Joined:Jun 2008	Message Posted: Jul 5, 2009 5:14:34 PM Ignore GOLDWING2003 Report Abuse So when are the prices at the pump going to come down???
trcscout Veteran Author Georgia Posts:279 Points:34,985 Joined:Feb 2009	Message Posted: Jul 5, 2009 5:10:50 PM Ignore trcscout Report Abuse This might be a good thing, maybe it will cause some of the other (greedy companies) to drop there prices too.
Focus2 Champion Author Illinois Posts:3,190 Points:1,004,985 Joined:Mar 2006	Message Posted: Jul 5, 2009 5:05:08 PM Ignore Focus2 Report Abuse Aramco cut heavy crude prices to the U.S. the most, by 75 cents a barrel to $5.50 below the cost of West Texas Intermediate crude." Wonder what their strategy is? In the past when they cut the cost of crude it put American oil rigs out of business. What about Texas crude? Won't they take a cut also? Right now it may be cheaper to import foreign oil than to bring in domestic oil. So much for getting away from foreign oil.
rgjoslin Champion Author Colorado Springs Posts:2,038 Points:374,655 Joined:Sep 2008	Message Posted: Jul 5, 2009 5:02:37 PM Ignore rgjoslin Report Abuse Makes no sense
Jeff4U Champion Author Atlanta Posts:2,166 Points:623,925 Joined:Nov 2004	Message Posted: Jul 5, 2009 5:01:21 PM Ignore Jeff4U Report Abuse Why are they lowering the price? School is starting back soon - summer vacation season is ending, record low demand, record high level inventories (over 60 tanker ships in limbo), the dollar is strengthening, and the U.S. economy has worsened with record high unemployment - the recession is far from over. They are undoubtedly aware of future crude prices imminently heading back to record lows - perhaps the $30 range. Ultimately, supply and demand come into play regardless of speculation.
netman044 Champion Author Texas Posts:2,361 Points:386,830 Joined:Sep 2005	Message Posted: Jul 5, 2009 5:01:21 PM Ignore netman044 Report Abuse This just means more profit for the oil companies.
djdon917 Sophomore Author New Jersey Posts:231 Points:16,995 Joined:Oct 2007	Message Posted: Jul 5, 2009 5:00:35 PM Ignore djdon917 Report Abuse Here we go UP BIG time Gas has Not gone Down has gone up 7 Cents this hoilday weekend
TopGunn Champion Author Baltimore Posts:2,799 Points:1,355,210 Joined:Aug 2004	Message Posted: Jul 5, 2009 5:00:14 PM Ignore TopGunn Report Abuse A good start to needed relief.
4warned Champion Author Michigan Posts:2,808 Points:970,860 Joined:Nov 2006	Message Posted: Jul 5, 2009 4:58:59 PM Ignore 4warned Report Abuse I hope this means lower prices at the pump however, somehow I feel it probably will not.
saveongasNC Champion Author North Carolina Posts:2,034 Points:446,775 Joined:Aug 2008	Message Posted: Jul 5, 2009 4:58:27 PM Ignore saveongasNC Report Abuse The prices is starting to drop here.
krisli Champion Author San Francisco Posts:1,455 Points:668,330 Joined:Apr 2007	Message Posted: Jul 5, 2009 4:58:14 PM Ignore krisli Report Abuse Hoping for lower gas prices.
lostorosbravos Champion Author Oklahoma Posts:1,060 Points:246,885 Joined:Jul 2008	Message Posted: Jul 5, 2009 4:56:47 PM Ignore lostorosbravos Report Abuse Does this mean lower prices at the pump??
OldMan322 Champion Author Illinois Posts:1,051 Points:395,045 Joined:Jul 2008	Message Posted: Jul 5, 2009 4:56:42 PM Ignore OldMan322 Report Abuse "DerHahn" I would said the oil companies are making so much money they do not want us to know how much.
WonderfulMI Champion Author Michigan Posts:4,079 Points:522,475 Joined:Jun 2008	Message Posted: Jul 5, 2009 4:54:04 PM Ignore WonderfulMI Report Abuse They can undersell us easily. The "$5.50 below the cost of West Texas Intermediate crude" should tell you that retaining the market share s important. Switching to alternatives is the one thing that OPEC fears most.
Chiron All-Star Author Tucson Posts:602 Points:220,550 Joined:Aug 2008	Message Posted: Jul 5, 2009 4:52:56 PM Ignore Chiron Report Abuse We will see if it is a true price drop or a drop with one hand while the other hand is already in our wallets.
FlashMO Rookie Author St. Louis Posts:3 Points:385 Joined:Jul 2009	Message Posted: Jul 5, 2009 4:50:39 PM Ignore FlashMO Report Abuse The days of less than $1.00 gas is long gone and not returning. It is the speculators that drives the price of gasoline at the pump. I say shoot them now.
MikLamb Champion Author Texas Posts:1,613 Points:915,515 Joined:Jun 2006	Message Posted: Jul 5, 2009 4:45:08 PM Ignore MikLamb Report Abuse Let's see. 75 cents per barrel will probably equal 1/2 cent at the pump.
LeeFree Champion Author Pittsburgh Posts:3,042 Points:1,020,150 Joined:Jun 2005	Message Posted: Jul 5, 2009 4:44:55 PM Ignore LeeFree Report Abuse Heavy crude costs more to refine so it should be cheaper.
DerHahn Champion Author Illinois Posts:6,214 Points:861,995 Joined:May 2004	Message Posted: Jul 5, 2009 4:43:48 PM Ignore DerHahn Report Abuse good for the profit margins of the oil companies. of course we won't see any lower prices at the pumps. they oil companies don't pay what you see on the markets anyway. why aren't we seeing any reports of oil companies earnings this year?
05HD Veteran Author Cincinnati Posts:483 Points:88,260 Joined:Jan 2008	Message Posted: Jul 5, 2009 4:43:33 PM Ignore 05HD Report Abuse COMPETION IS GOOD.
TBONE3 Champion Author Pennsylvania Posts:2,432 Points:716,765 Joined:Mar 2005	Message Posted: Jul 5, 2009 4:39:48 PM Ignore TBONE3 Report Abuse What they lower today, they an boost tomorrow. Do not feel complacent.
DrCashFlow Champion Author Massachusetts Posts:1,205 Points:436,750 Joined:Jun 2008	Message Posted: Jul 5, 2009 4:37:00 PM Ignore DrCashFlow Report Abuse typical move for this time of year.
AF1992 Rookie Author San Antonio Posts:80 Points:81,950 Joined:Jan 2008	Message Posted: Jul 5, 2009 4:36:51 PM Ignore AF1992 Report Abuse What...that's interesting
dkinsf Champion Author San Jose Posts:2,012 Points:577,885 Joined:Mar 2007	Message Posted: Jul 5, 2009 4:36:16 PM Ignore dkinsf Report Abuse So much for keeping the line. I wonder when will the gas prices come down?
trojanskip All-Star Author Orange County Posts:636 Points:334,880 Joined:Mar 2008	Message Posted: Jul 5, 2009 4:32:42 PM Ignore trojanskip Report Abuse this will make friends in europe
DarthDadJr Champion Author Virginia Posts:2,000 Points:405,560 Joined:Jul 2008	Message Posted: Jul 5, 2009 4:24:49 PM Ignore DarthDadJr Report Abuse It's nice, but we don't want to get hooked on using their cheaper oil because they can always raise the price.
e3p0 Champion Author Columbus Posts:2,080 Points:562,580 Joined:Mar 2006	Message Posted: Jul 5, 2009 4:24:07 PM Ignore e3p0 Report Abuse I am glad. Thank you.
Rajah Champion Author Illinois Posts:3,485 Points:1,255,435 Joined:Jul 2005	Message Posted: Jul 5, 2009 4:21:48 PM Ignore Rajah Report Abuse Low petroleum prices will help the recovery.
georgeo Champion Author California Posts:1,000 Points:36,330 Joined:May 2009	Message Posted: Jul 5, 2009 4:18:34 PM Ignore georgeo Report Abuse Lets get back to $1.25 gas. We need it for awhile until we build our renewable infrastructure.
BillHeatherL Champion Author Alberta Posts:1,409 Points:712,785 Joined:Apr 2007	Message Posted: Jul 5, 2009 4:17:19 PM Ignore BillHeatherL Report Abuse will we see a drop in the price at the pump --- i think not
WCCurtis Champion Author San Bernardino Posts:1,648 Points:638,420 Joined:Oct 2005	Message Posted: Jul 5, 2009 4:16:32 PM Ignore WCCurtis Report Abuse Good if the rest of OPEC follows. Bad if this means the Economy isn't getting better.
BigBobOH Sophomore Author Cleveland Posts:195 Points:94,495 Joined:Mar 2009	Message Posted: Jul 5, 2009 4:14:36 PM Ignore BigBobOH Report Abuse All I'm asking for is $1.50 to $2.00 a gallon is that really tooooo much to ask for...
PDQBlues Champion Author San Diego Posts:1,058 Points:260,325 Joined:Jan 2009	Message Posted: Jul 5, 2009 4:11:02 PM Ignore PDQBlues Report Abuse Keep those oil prices falling. Maybe, just maybe, the price for gas will come down.
aarrrt Champion Author San Diego Posts:1,645 Points:444,410 Joined:May 2008	Message Posted: Jul 5, 2009 4:09:27 PM Ignore aarrrt Report Abuse So naturally the gas prices will follow suit, or will they? We shall see how the oil barons respond.
Brewernut All-Star Author Milwaukee Posts:780 Points:297,475 Joined:Oct 2008	Message Posted: Jul 5, 2009 4:05:17 PM Ignore Brewernut Report Abuse will it reflect on the pump price?
Bud122CA Champion Author California Posts:1,640 Points:408,210 Joined:Jul 2008	Message Posted: Jul 5, 2009 4:03:12 PM Ignore Bud122CA Report Abuse Funny how others try to control us and what they will do to accomplish it.
hockeydadOH Sophomore Author Cincinnati Posts:201 Points:69,810 Joined:Jun 2009	Message Posted: Jul 5, 2009 4:02:55 PM Ignore hockeydadOH Report Abuse Let's see it at the pumps...PLEASE !!!!!!!!!!!!!!!
PathfinderSC Champion Author South Carolina Posts:3,087 Points:571,960 Joined:Mar 2008	Message Posted: Jul 5, 2009 4:02:39 PM Ignore PathfinderSC Report Abuse Well it sounds good , Makes me wonder what they up to.
day49 Veteran Author Washington Posts:470 Points:487,500 Joined:Apr 2007	Message Posted: Jul 5, 2009 3:57:45 PM Ignore day49 Report Abuse A sustained low price of oil will help the economy and keep gas prices low. Just worried about when the world's economy recovers and there is more demand for the current supply of oil. Need more oil sources.
psuray All-Star Author Hartford Posts:889 Points:213,075 Joined:Feb 2009	Message Posted: Jul 5, 2009 3:50:19 PM Ignore psuray Report Abuse maybe just maybe we will see a price drop in gas
dhnbBUG Champion Author Pennsylvania Posts:2,252 Points:515,350 Joined:Apr 2008	Message Posted: Jul 5, 2009 3:49:45 PM Ignore dhnbBUG Report Abuse Reducing their prices so we don't create alternative energy seems to be their motive now.
Sneakers55 Champion Author Houston Posts:23,415 Points:1,082,445 Joined:Nov 2005	Message Posted: Jul 5, 2009 3:49:14 PM Ignore Sneakers55 Report Abuse MalibuGordie wrote: >It is in the Saudi's best interest to discorage the develoment of >alternative energy. If electic, hydrogen, and hybrid cars are not >ecomincal on a large scale, we keep buying oil. Hybrids are economical for high-mileage drivers at least, and the break-even point gets lower and lower as the price of fuel goes higher and higher. Electric and hydrogen... where do you source them? You can get electricity from wind and solar (but for every kWh you have of renewable energy, you have to have a kWh of conventional energy) but there's no magic source of hydrogen. If you're doing it by steam reforming of methane (the cheapest source right now) you're better off burning the methane in the first place.
lgwhitlock Champion Author California Posts:1,686 Points:446,300 Joined:Jun 2008	Message Posted: Jul 5, 2009 3:48:01 PM Ignore lgwhitlock Report Abuse I see they want to sell more than the Texan's do right now. Good for us in the USA, but it seems hardly fair to the rest of the world...
Hugo40 Champion Author Kentucky Posts:1,359 Points:376,345 Joined:Aug 2008	Message Posted: Jul 5, 2009 3:47:40 PM Ignore Hugo40 Report Abuse The oil producing countries better wake up and drop the price in order to get consumption up.