Saudi Arabia cuts July oil prices for Asia to nearly 4-year low after OPEC+ supply boost

CNA

2 days ago

Saudi Arabia, the world's biggest oil exporter, cut its July prices for Asian crude buyers to close to the lowest level in four years on Wednesday, in what the market sees as the country's attempt to regain market share.
Saudi Arabia has pushed OPEC+ this year to raise its output targets ahead of schedule.
OPEC+ has cited healthy demand and low stocks as the reasons behind increasing production. Those reasons would normally prompt producers to raise selling prices.
Saudi Arabia's state firm Aramco cut the official selling price for the flagship Arab light crude it sells to Asia for July to $1.20 a barrel above the Oman/Dubai average. The OSP premium for June was $1.40 a barrel and in May it was $1.20.
A Reuters survey had expected the price cut for Arab light in July to be 40 to 50 cents.
Saudi crude OSPs are usually released around the fifth day of each month, and set the price trend for other grades exported by Iran, Kuwait and Iraq, affecting about 9 million barrels per day of crude bound for Asia.
Eight OPEC+ countries met on Saturday and agreed to another big increase of 411,000 bpd for July, having increased by the same amount for May and June.
The tables below show the full free-on-board prices for June in U.S. dollars.
Saudi term crude supplies to
Asia are priced as a
differential to the
Oman/Dubai average:
July June CHANG
E
SUPER 1.75 1.95 -0.20
LIGHT
EXTRA 1.00 1.20 -0.20
LIGHT
LIGHT 1.20 1.40 -0.20
MEDIUM 0.75 0.85 -0.10
HEAVY -0.30 -0.30 0
Prices at Ras Tanura destined
for United States are set
against ASCI:
July June CHANG
E
EXTRA 5.75 5.65 0.10
LIGHT
LIGHT 3.50 3.40 0.10
MEDIUM 3.50 3.50 0
HEAVY 3.05 3.05 0
Prices at Ras Tanura destined
for Northwest Europe are set
against ICE Brent:
July June CHANG
E
EXTRA 4.85 3.05 1.80
LIGHT
LIGHT 3.25 1.45 1.80
MEDIUM 2.45 0.65 1.80
HEAVY 0.05 -1.75 1.80
Prices at Ras Tanura for
Saudi oil destined for the
Mediterranean are set against
ICE Brent:
July June CHANG
E
EXTRA 4.75 2.95 1.80
LIGHT
LIGHT 3.05 1.25 1.80
MEDIUM 2.45 0.65 1.80
HEAVY -0.25 -2.05 1.80