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HomeLatestSaudi Arabia Reduces July Arab Light Crude Oil OSP to Asia
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Saudi Arabia Reduces July Arab Light Crude Oil OSP to Asia

Saudi Arabia has adjusted its official selling price (OSP) for its flagship Arab Light crude oil to Asia for July, setting it at plus $2.40 versus the Oman/Dubai average.

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This marks a reduction of 50 cents per barrel from the June OSP, the first decrease in five months and aligns with market expectations from a Reuters survey.

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The OSPs for other crude grades sold to Asian buyers were also reduced by 40-60 cents, according to the document.

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Refinery sources anticipated Saudi Aramco, the state oil giant, to lower its prices in Asia due to declining Middle East crude benchmarks and diminished profit margins for Asian refiners.

The potential price reduction for Asia, which represents 82% of Saudi Arabia’s oil exports, underscores the challenges faced by OPEC producers amidst robust non-OPEC supply growth and global economic uncertainties.

At its June 2 meeting, OPEC agreed to extend most of its substantial oil output cuts well into 2025 in an effort to stabilize the market against sluggish demand growth and heightened U.S. production.

Aramco also adjusted the Arab Light OSP to Northwest Europe at plus $3.10 versus Ice Brent, marking a $1 increase per barrel from June, as per the document.

It raised its OSPs to both Northwest Europe and the Mediterranean by $1 per barrel across all grades.

For buyers in the United States, the Arab Light OSP was set at plus $4.75 versus ASCI. All July OSPs to the United States remained unchanged from June levels, according to the document.

Aramco determines its crude prices based on input from customers and calculates changes in the value of its oil over the past month, considering yields and product prices.

Saudi crude OSPs set the tone for Iranian, Kuwaiti, and Iraqi prices, impacting approximately 9 million barrels per day (bpd) of crude destined for Asia.

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