Saudi Aramco (ARMCO) on Sunday cut the official selling price by $2/bbl from January levels to $1.50/bbl over Oman/Dubai quotes, the lowest in over two years. Prices in northwest Europe and the Mediterranean were reduced $1.50 to $2/bbl vs. the ICE Brent crude benchmark compared to January prices.
On the other hand, U.S. oil production is now near record levels, with weekly exports hitting a fresh high last week. The demand for U.S. oil is driven by the Red Sea crisis and the resulting runup in costs for shipping companies to divert their tankers.