Saudi Arabia sharply cuts July OSP for Asia amid slow demand
- The July OSP for flagship Arab Light crude has been set at a premium of $9.50 a barrel above the average Dubai and Oman quotes
Saudi Arabia has cut its official selling prices (OSPs) for crude oil to Asia in July for a second month, as expected, as spot premiums eased on slow demand despite supply disruptions driven by the U.S.-Israeli war with Iran.
The July OSP for flagship Arab Light crude has been set at a premium of $9.50 a barrel above the average Dubai and Oman quotes, a pricing document reviewed by Reuters showed on Monday, $6 a barrel lower than the OSP for June.
July OSPs for other Saudi grades to Asia also fell by $6 per barrel from the previous month.
The price cut came in line with market expectation following a price decline and tepid trading in the spot market in May.
The cash Dubai price’s premium to swaps averaged $9.59 a barrel last month, down from April’s average of $13.92, Reuters data showed, with spot Oman premiums showing a similar trend.
Saudi oil sales to China to halve next month, Bloomberg News reports
Refiners in China, the world’s No. 1 oil importer, have cut runs and drawn on inventories due to mounting refining losses, which has led to a sharp decline in the country’s imports. They lifted less Saudi crude in May and June.
Still, July OSPs to Asia remain much higher than before the Iran war as the conflict has largely halted energy flows out of the key Strait of Hormuz waterway.
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