Saudi Arabia May Cut August Oil Prices for Asia to Four-Month Low

Saudi Arabia may sharply reduce its official selling prices (OSPs) for crude oil shipped to Asia in August, according to a Reuters survey, as Middle East spot crude prices have fallen on increased supply. According to Jin10, industry sources cited in the survey said the OSP for the flagship Arab Light grade for August may be set at a premium of $1.50 to $3.00 a barrel over the average of Dubai and Oman quotes. That would be $6.50 to $8.00 a barrel lower than the July OSP. The sources said OSPs for other Saudi crude grades were also expected to decline by a similar amount. Ahead of the anticipated price cuts, the Middle East spot crude market has recently deteriorated. The Dubai cash differential turned to a discount of $1.64 a barrel this week, marking its lowest level in six years.