Oil Agon: Riyadh Cuts Prices for Europe Amid Iran's Resurgence on Market

Saudi Arabia has decided to cut prices for July oil exports to Europe, as Iran’s resurgence from sanctions has resulted in greater oil market competition, The Wall Street Journal reported, citing an e-mailed statement by the Saudi Aramco oil company.

MOSCOW (Sputnik) — According to The Wall Street Journal, Riyadh cut prices for the light crude exports by 35 cents per barrel to northwestern Europe and by 10 cents per barrel to the Mediterranean region.

In the meanwhile, the country ramped up prices for exports to the United States, as Washington has not yet lifted the ban on oil imports from Iran. The exports to the United States have reportedly increased by 10 cents per barrel.

In January, the European Union, the United Nations, and partially the United States lifted their sanctions against the Islamic republic after the International Atomic Energy Agency verified Tehran’s compliance with a nuclear agreement reached last July. The lifting of sanctions allowed Iranian oil producers to re-enter the global market.

In April, Iran signed a deal with European refineries that could allow for the country to sell up to 700,000 barrels of oil per day to Europe. The deal was set to be implemented "within the next few months," according to Oil Minister Bijan Namdar Zanganeh.