Although Saudi Arabia is the largest oil producer in the world, after all, so many countries in the world are producing oil, and so many countries are willing to use prices to stabilize their position in the market, then even Saudi Aramco will still follow the general trend and start the second oil price decline. Just four days ago, he announced his official crude oil price in September in the afternoon, and from the data released at that time, we can know that Saudi Aramco will reduce the crude oil price in the Asian and European markets, which means that under the influence of the epidemic, the oil price in the Asian and European markets will be lower.
In September, Arab oil supplied to the Asian market will drop by 0.3 US dollars from the previous month, while the price of oil supplied to European countries will drop by 2.5 US dollars. We know that even if the oil price drops by only a few cents, it will be a huge discount for all drivers. The US$ 0.3 is close to two dollars in China, and this time, the decline in crude oil prices will definitely lead to the decline in oil prices in the market. This is not the first time that Saudi Aramco has bowed to the world. Five months ago, Saudi Aramco also lowered the price of crude oil in Asia and Europe.
The reason why Saudi Arabia bowed to the world five months ago was because the negotiations between Saudi Arabia and Russia broke down in the negotiations on crude oil production reduction, which was equivalent to the fact that Saudi Arabia announced an increase in crude oil production after the two sides failed to reach an understanding. We know that the increase in crude oil production will inevitably lead to a decline in prices, and they want to launch a crude oil price war through this situation. I want to coerce other countries to slowly withdraw from this war, and this time, the price of crude oil will fall, which may be mainly due to the impact of the COVID-19 epidemic. We know that many people are affected by the epidemic and can't even get out of their homes, so how can we drive? Therefore, the market demand for oil has fallen sharply, and Saudi Arabia, which is rich in oil in the world, has suffered a huge blow this time. Therefore, he hopes that through this adjustment of oil prices, people will be able to understand it.