{"id":114688,"date":"2026-06-08T19:55:02","date_gmt":"2026-06-08T14:55:02","guid":{"rendered":"https:\/\/dailyausaf.com\/en\/?p=114688"},"modified":"2026-06-08T19:55:02","modified_gmt":"2026-06-08T14:55:02","slug":"saudi-arabia-slashes-oil-prices-for-asia","status":"publish","type":"post","link":"https:\/\/dailyausaf.com\/en\/business\/saudi-arabia-slashes-oil-prices-for-asia\/","title":{"rendered":"Saudi Arabia slashes oil prices for Asia"},"content":{"rendered":"
RIYADH: Saudi <\/span>Arabia <\/span>has <\/span>drastically <\/span>cut <\/span>its <\/span>July <\/span>selling <\/span>prices <\/span>for <\/span>its <\/span>crude <\/span>oil <\/span>shipments <\/span>to <\/span>Asia, <\/span>making <\/span>it <\/span>the <\/span>second <\/span>monthly <\/span>cut <\/span>this <\/span>year <\/span>as <\/span>slowing <\/span>demand <\/span>in <\/span>China <\/span>trumps <\/span>worries <\/span>over <\/span>continuous <\/span>supply <\/span>interruptions <\/span>in <\/span>the <\/span>Middle <\/span>East.<\/span><\/span><\/div>\n
<\/div>\n
Saudi <\/span>Aramco <\/span><\/a>reduced <\/span>the <\/span>July <\/span>OSP <\/span>for <\/span>its <\/span>flagship <\/span>Arab <\/span>Light <\/span>to <\/span>a <\/span>premium <\/span>of <\/span>$9.50 <\/span>per <\/span>barrel <\/span>above <\/span>average <\/span>Oman\/Dubai <\/span>benchmark <\/span>prices <\/span>as <\/span>per <\/span>a <\/span>pricing <\/span>document <\/span>obtained <\/span>by <\/span>Reuters.<\/span><\/span><\/div>\n
<\/div>\n
This <\/span>represents <\/span>a <\/span>drop <\/span>of <\/span>$6 <\/span>per <\/span>barrel <\/span>from <\/span>June <\/span>levels, <\/span>which <\/span>was <\/span>in <\/span>line <\/span>with <\/span>market <\/span>expectations <\/span>after <\/span>a <\/span>weaker <\/span>trade <\/span>flow <\/span>in <\/span>Asian <\/span>spot <\/span>markets. <\/span><\/span>The <\/span>price <\/span>cut <\/span>across <\/span>other <\/span>Saudi <\/span>grades <\/span>also <\/span>falls <\/span>by <\/span>$6 <\/span>per <\/span>barrel <\/span>for <\/span>shipment <\/span>to <\/span>Asia <\/span>due <\/span>to <\/span>rising <\/span>concern <\/span>over <\/span>demand <\/span>in <\/span>the <\/span>world’s <\/span>largest <\/span>importer <\/span>of <\/span>crude <\/span>oil. <\/span><\/span><\/div>\n
<\/div>\n
Analysts <\/span>stated <\/span>that <\/span>this <\/span>is <\/span>driven <\/span>by <\/span>worsening <\/span>refining <\/span>margins <\/span>and <\/span>decreasing <\/span>crude <\/span>purchases <\/span>from <\/span>China, <\/span>Saudi Arabia’s <\/span>biggest <\/span>customer <\/span>in <\/span>Asia. <\/span><\/span>Refiners <\/span>in <\/span>China <\/span>were <\/span>reducing <\/span>refining <\/span>activities <\/span>and <\/span>running <\/span>down <\/span>inventories <\/span>due <\/span>to <\/span>low <\/span>profit <\/span>margins. <\/span><\/span><\/div>\n
<\/div>\n
The <\/span>drop <\/span>in <\/span>China’s <\/span>crude <\/span>imports <\/span>from <\/span>Saudi Arabia <\/span>in <\/span>May <\/span>and <\/span>June <\/span>has <\/span>forced <\/span>the <\/span>latter <\/span>to <\/span>reduce <\/span>its <\/span>price <\/span>to <\/span>keep <\/span>its <\/span>export <\/span>prices <\/span>competitive <\/span>in <\/span>the <\/span>region. <\/span><\/span><\/div>\n
<\/div>\n
This <\/span>decision <\/span>has <\/span>been <\/span>made <\/span>despite <\/span>ongoing <\/span>global <\/span>tension <\/span>in <\/span>the <\/span>oil <\/span>markets <\/span>as <\/span>a <\/span>result <\/span>of <\/span>the <\/span>ongoing <\/span>U.S.-Israel <\/span>warfare <\/span>against <\/span>Iran, <\/span>which <\/span>heavily <\/span>impacted <\/span>the <\/span>Strait <\/span>of <\/span>Hormuz, which<\/span>\u00a0<\/span>accounts <\/span>for <\/span>nearly <\/span>one-fifth <\/span>of the <\/span>world’s <\/span>oil <\/span>trade <\/span>to <\/span>pass <\/span>through. <\/span><\/span><\/div>\n
<\/div>\n
Although <\/span>Saudi <\/span>Arabia <\/span>diverted <\/span>some <\/span>exports <\/span>to <\/span>its <\/span>East-West <\/span>Pipeline <\/span>to the <\/span>Red <\/span>Sea’s <\/span>Yanbu <\/span>port, <\/span>limited <\/span>shipping <\/span>routes <\/span>in <\/span>the <\/span>region <\/span>still <\/span>put <\/span>constraints <\/span>on <\/span>the <\/span>overall <\/span>supply <\/span>volume.<\/span><\/span><\/div>\n
<\/div>\n
Nevertheless, <\/span>July <\/span>prices <\/span>are <\/span>still <\/span>much <\/span>higher <\/span>than <\/span>those before<\/span>\u00a0<\/span>the <\/span>start <\/span>of <\/span>the <\/span>Iran-induced <\/span>turmoil <\/span>this <\/span>year. <\/span><\/span>This <\/span>recent <\/span>decision <\/span>also <\/span>comes <\/span>after the <\/span>OPEC+ <\/span>decision <\/span>to <\/span>increase <\/span>output <\/span>in <\/span>July, <\/span>signaling <\/span>that <\/span>oil <\/span>producers <\/span>have <\/span>been <\/span>attempting <\/span>to <\/span>keep <\/span>oil <\/span>markets <\/span>in <\/span>control <\/span>amidst <\/span>the <\/span>high <\/span>supply <\/span>uncertainty <\/span>and <\/span>low <\/span>demand <\/span>growth, <\/span>even <\/span>though <\/span>the <\/span>real <\/span>supply <\/span>volume <\/span>is <\/span>constrained <\/span>by <\/span>logistic <\/span>issue <\/span>and <\/span>geopolitical <\/span>risks. <\/span><\/span><\/div>\n
<\/div>\n
China’s <\/span>crude <\/span>oil <\/span>imports <\/span>and <\/span>the <\/span>situation <\/span>at <\/span>the <\/span>Strait <\/span>of <\/span>Hormuz <\/span>would <\/span>be <\/span>among <\/span>the <\/span>crucial <\/span>factors <\/span>that <\/span>would <\/span>determine <\/span>oil <\/span>prices <\/span>in <\/span>H2 <\/span>2026.<\/span><\/span><\/div>\n","protected":false},"excerpt":{"rendered":"

RIYADH: Saudi Arabia has drastically cut its July selling prices for its crude oil shipments to Asia, making it the second monthly cut this year as slowing demand in China trumps worries over continuous supply interruptions in the Middle East. Saudi Aramco reduced the July OSP for its flagship Arab Light to a premium of […]<\/p>\n","protected":false},"author":9,"featured_media":78434,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,9],"tags":[7364],"class_list":["post-114688","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-latest-news","tag-oil-prices"],"_links":{"self":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts\/114688","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/comments?post=114688"}],"version-history":[{"count":1,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts\/114688\/revisions"}],"predecessor-version":[{"id":114689,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts\/114688\/revisions\/114689"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/media\/78434"}],"wp:attachment":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/media?parent=114688"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/categories?post=114688"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/tags?post=114688"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}