With tensions between the United States and Iran easing, global oil markets have begun to stabilise, pushing crude oil prices down to around USD 72 per barrel. In another positive development, Saudi Arabia has announced its biggest price cut for crude oil supplied to Asian countries in nearly 26 years, a move that could benefit major importers such as India.
The reduction is expected to lower the cost of crude imports and has raised hopes that petrol and diesel prices in India could ease if the trend continues.
Saudi Aramco reduces August oil prices
According to a Bloomberg report, Saudi Arabia’s state-owned oil company, Saudi Aramco, has decided to reduce the official selling price of crude oil for Asian buyers from August.
The company has lowered the price of its flagship Arab Light crude by USD 1.10 per barrel, making it available at a premium of USD 1.50 per barrel over the regional benchmark.
As India imports a significant portion of its crude oil requirements from Saudi Arabia, the price cut is expected to provide relief to Indian refiners and reduce import costs.
Global crude prices continue to ease
International crude oil prices have remained under pressure since mid-June. Brent crude is currently trading at around USD 72 per barrel, close to the levels seen at the end of February this year.
The decline follows the easing of geopolitical tensions after the US-Iran conflict subsided, reducing concerns over disruptions to global oil supplies.
Hormuz shipping resumes, improving supply
Following the end of hostilities between the United States and Iran, shipping through the Strait of Hormuz has resumed, helping restore normal oil supply routes.
During the conflict, disruptions in the strategic waterway forced Saudi Aramco to reroute shipments through the Yanbu port on the Red Sea, resulting in higher transportation costs.
With shipping through Hormuz back to normal, Saudi Aramco has increased crude exports from the Ras Tanura port to nearly 90 per cent of pre-conflict levels. The improved supply situation has also created more options for sourcing lower-cost crude.
OPEC+ increases production
Adding to the positive outlook, the OPEC+ alliance, led by Saudi Arabia and Russia, has announced an increase in oil production quotas for August.
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Countries including Saudi Arabia, Iraq and Kuwait are expected to utilise their expanded production limits, increasing crude supply in the global market and helping keep prices under control.
First published on: Jul 07, 2026 11:34 AM IST
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