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Egypt Agrees to Lower Price of Crude Oil It Sells to Israel

– Egypt has agreed to reduce the price of the crude oil it sells to Israel, its biggest single customer. The $3 a barrel reduction in the price of top-quality oil will save Israel about $2 million a month, Finance Ministry officials said.

The price reduction was agreed after two weeks of negotiations between Israeli and Egyptian officials in Cairo. Israel had asked for the price drop in view of falling prices and a glut of crude oil on world markets. Egypt sells two million tons of oil a year to Israel from oil fields in Sinai previously worked, developed or even discovered and exploited by Israel before the area was handed back to Egypt under the peace treaty.