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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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subnuke Champion Author Atlanta Posts:2,783 Points:562,825 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:1,713 Points:421,310 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:937 Points:469,615 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 Champion Author Rochester Posts:2,188 Points:620,740 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:2,468 Points:623,455 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:1,713 Points:421,310 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:284 Points:36,185 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:3,999 Points:1,210,905 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:3,480 Points:658,355 Joined:Sep 2008	Message Posted: Jul 5, 2009 5:02:37 PM Ignore rgjoslin Report Abuse Makes no sense
Jeff4U Champion Author Atlanta Posts:3,262 Points:877,195 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:3,844 Points:646,060 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 Veteran Author New Jersey Posts:320 Points:23,950 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:4,224 Points:1,636,735 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:4,221 Points:1,253,895 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:3,287 Points:721,000 Joined:Aug 2008	Message Posted: Jul 5, 2009 4:58:27 PM Ignore saveongasNC Report Abuse The prices is starting to drop here.
lostorosbravos Champion Author Oklahoma Posts:1,171 Points:296,230 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:1,113 Points:645,085 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:5,837 Points:806,400 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:839 Points:325,530 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:3,038 Points:1,197,190 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:4,375 Points:1,290,650 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:8,094 Points:1,145,075 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 All-Star Author Cincinnati Posts:537 Points:102,190 Joined:Jan 2008	Message Posted: Jul 5, 2009 4:43:33 PM Ignore 05HD Report Abuse COMPETION IS GOOD.
TBONE3 Champion Author Pennsylvania Posts:3,870 Points:1,000,670 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:2,430 Points:691,395 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:2,367 Points:669,085 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:347,480 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:3,318 Points:641,635 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:2,179 Points:583,090 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:4,686 Points:1,508,745 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:2,491 Points:101,385 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:2,756 Points:979,110 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:2,985 Points:915,465 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:217 Points:102,710 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:2,269 Points:500,375 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:2,980 Points:712,275 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:854 Points:320,330 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:2,950 Points:674,505 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:4,544 Points:854,760 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 All-Star Author Washington Posts:932 Points:709,965 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:919 Points:223,650 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:2,621 Points:730,455 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:31,945 Points:1,292,545 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 Chico Posts:2,809 Points:720,025 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:2,723 Points:647,010 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.
kruk Champion Author London Posts:2,843 Points:332,715 Joined:Jan 2007	Message Posted: Jul 5, 2009 3:46:20 PM Ignore kruk Report Abuse wow, we will see what Wall Street do with that - by now they can smell room for new price hike
Beboper Champion Author Virginia Posts:3,752 Points:1,182,410 Joined:Oct 2005	Message Posted: Jul 5, 2009 3:39:32 PM Ignore Beboper Report Abuse let's start lowering the prices at gas pumps
pigmanTX Champion Author Houston Posts:1,281 Points:369,735 Joined:Nov 2008	Message Posted: Jul 5, 2009 3:38:21 PM Ignore pigmanTX Report Abuse Excellent.