Iran undercuts Saudi oil prices in the battle for Europe

Wall Street “Wolf Is Wailing” Down -337 Points

gas-pricesTehran will provide a $6.55 discount on heavy crude for its European consumers, Reuters cites the National Iranian Oil Company. Saudi Arabia currently sells oil to Europe at a discount of $4.85 a barrel.

The announcement came a day after Saudi state-owned Aramco said it would expand discounts for its light crude by $0.60 a barrel to northwest Europe and by $0.20 a barrel in the Mediterranean for February delivery.

The rebate on Iran’s light crude matches Saudi’s February official selling price for oil to northwest Europe.

Iran is planning more price cuts to Europe next month in line with similar reductions by Saudi Arabia, and is willing to compete with its major rival without making deep discounts, reports the Wall Street Journal.

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