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President and CEO of Saudi Aramco Khalid A. Al Falih. Image courtesy of World Economic Forum/Youtube.

A price drop by Saudi Arabia’s Saudi Aramco has pulled the OPEC daily basket price to a three year low.

State-owned Saudi Aramco lowered the premium for Arab Light compared to U.S. Gulf Coast to at least December, Bloomberg said.

Saudi Arabia, OPEC’s largest producer, cut its Arab Light to U.S. Gulf Coast benchmark by 45 cents per barrel.

The country also increased discounts for medium and heavy grade crude for the fourth month in a row.

West Texas Intermediate also fell to a three year low on news of Saudi Arabia’s price cuts for crude exports to the U.S.

The OPEC daily basket price was at $80.64 a barrel on Monday, shedding gains from last week that had raised prices to around $82 a barrel.

Global oil demand has been slowing in the last few months while supplies from non-OPEC producers have been booming.

Venezuela called for an emergency meeting of OPEC last month as slumping oil revenues and a deep cash crunch stoke fears that the country could default.

Saudi Arabia has made it clear it will not cut production to boost prices.

With oil prices diving to their lowest levels since 2010, OPEC countries have begun undercutting each other to hold onto their market shares.

Saudi Arabia, Iraq and Iran are all selling crude to buyers in Asia at a discount, the Financial Times said.

CEO of Venezuela’s state owned PDVSA Eulogio del Pino called the tensions between OPEC members a “price war.”