June 26, 2026 [Reuters]- Saudi Arabia is likely to sharply cut its official selling prices (OSPs) for ​crude oil to Asia in August to a four-month low, a Reuters survey showed, after spot ‌crude markets tumbled on rising Middle Eastern supplies.

The August OSP for flagship Arab Light crude may slide to a premium of $1.5 to $3 a barrel above the average Dubai and Oman quotes, four industry sources said in the survey, $6.5 to $8 a barrel lower than ​the July OSP.

The respondents expected OSPs for other Saudi grades to fall by the same extent.

The expected cuts ​follow a sharp deterioration in Middle East spot crude markets. Dubai cash premiums to swaps ⁠fell into a discount of $1.64 a barrel this week, the lowest level in six years.

Dubai cash premiums have ​averaged $3.06 per barrel so far this month, down from $9.59 per barrel in May. Oman spot differentials also fell to ​six-year lows this week.

The market weakened as more crude cargoes resumed transiting the Strait of Hormuz following the ceasefire, easing concerns over supply disruptions. Fellow producers the United Arab Emirates, Iraq and Qatar also have been offering crude in the spot market.

Additional pressure came ​from expectations that Iran will increase exports after receiving a temporary reprieve from U.S. sanctions.

Physical crude differentials have ​also weakened globally, with cargoes from West Africa, Brazil and the United States trading at deep discounts amid ample supply.

Buyers expected a deep ‌price ⁠cut to attract buying, in competition with other barrels.

High Saudi prices have already weighed on demand from China, with buyers sharply reducing July liftings after also cutting June nominations.

Saudi Aramco also resumed crude loadings at its Ras Tanura export terminal on Friday after a nearly four-month suspension, according to shipping data, signalling a further recovery in Gulf export ​flows.

The state oil company had ​shifted crude exports to ⁠its Red Sea terminal at Yanbu after the conflict disrupted shipping through the Strait of Hormuz.

Still, two Asian buyers cautioned that uncertainty surrounding shipping conditions and geopolitical developments still ​makes it difficult to forecast prices.

Saudi crude OSPs are usually released around the ​fifth of each ⁠month, and set the trend for Iranian, Kuwaiti and Iraqi prices, affecting about 9 million barrels per day (bpd) of crude bound for Asia.

State oil giant Saudi Aramco sets its crude prices based on customer recommendations and on calculations of the ⁠change in ​the value of its oil over the past month, using yields ​and product prices.

Saudi Aramco officials, as a matter of policy, do not comment on the kingdom’s monthly OSPs.