Dubai

SAUDI Arabian Oil Co lowered the cost of its crude to the US, where production is the highest in three decades, deepening a sell-off that sent prices to the lowest in more two years. The state-owned producer, known as Saudi Aramco, lowered the premium for Arab Light relative to US Gulf Coast benchmarks by 45 US cents a barrel to the smallest since December. Medium and heavy grades were also down 45 US cents and extra light oil 50 US cents. Aramco increased the cost to Asia and Europe.

Swelling supplies from producers outside the Organization of the Petroleum Exporting Countries (Opec) drove oil prices into a bear market last month as global demand growth slowed. Middle Eastern producers are increasingly competing with cargoes from Latin America, North Africa and Russia for buyers, as well as with US production that has jumped 54 per cent in the past three years.