Special to WorldTribune.com

As demand continues to slide, Saudi Aramco is slashing crude oil prices to Asia and the United States.

Saudi Aramco is offering a $3.20 per barrel (below the regional benchmark) discount to Asia, the main market for Saudi crude oil. It is the largest discount offered to Asian customers since a $2 per barrel cut in 2012.

“They needed to cut pricing to keep Saudi crude competitive with other grades,” Robin Mills, a Dubai-based analyst at Manaar Energy Consulting, said. “Demand has been a bit weaker, leading to the cuts.”

The price of crude has plummeted nearly 50 percent from a year ago, trading below $50 per barrel in September. November contracts were settled on Oct. 5 at $48.53 per barrel.

Saudi oil minister Ali Al Naimi told the state-run Saudi Press Agency on Oct. 2 that the kingdom plans to keep up its investment in production amid the slump in prices.

“We have to do the right thing,” Al-Naimi said. “The right thing is to keep focused on demand and supply.” Commercially viable producers “will continue to prevail,” and OPEC will increase its market share, he added.

Saudi Aramco slashed its November pricing for its light, medium and heavy grades of crude to the U.S. by 30 cents per barrel each.

OPEC decided in December and again in June to keep its production levels unchanged at 30 million barrels per day.

Saudi Arabia increased output to a record 10.48 million barrels per day in June.

  Ali Al Naimi, OPEC, Saudi Aramco selling crude oil at discounted prices to Asia, slumping oil prices, U.S., WorldTribune.com