Saudi Arabia Cuts July Arab Light Crude Oil OSP to Asia
06.06.2024 By Tank Terminals - NEWS

June 06, 2024 [Reuters]- Saudi Arabia set its flagship Arab Light crude oil official selling price (OSP) to Asia at plus $2.40 versus Oman/Dubai average for July, a document seen by Reuters showed on Wednesday.


That marks a 50 cent per barrel cut from the June OSP, the first cut in five months and towards the lower end of market expectations according to a Reuters survey.

Its OSPs for other crude grades sold to Asian customers were slashed by 40-60 cents, the document showed.

Refining sources expected state oil giant Saudi Aramco to cut its prices in Asia because of falling Middle East crude benchmarks and weaker profit margins for Asian refiners.

The potential price reduction for Asia, which accounts for 82% of Saudi Arabia’s oil exports, underscores the pressure faced by producers in the Organization of the Petroleum Exporting Countries (OPEC), amid robust non-OPEC supply growth and a global economy facing headwinds.

OPEC agreed to extend most of its deep oil output cuts well into 2025 at its meeting on June 2, as it seeks to shore up the market against tepid demand growth and high U.S. production.

Aramco also set the Arab Light OSP to Northwest Europe at plus $3.10 versus Ice Brent, a hike of $1 per barrel from June, according to the document.

It hiked its OSPs to both Northwest Europe and the Mediterranean by $1 per barrel across the board.

For buyers in the United States, the Arab Light OSP was set at plus $4.75 versus ASCI. All of its July OSPs to the United States were unchanged from June levels, the document showed.

Aramco sets its crude prices based on recommendations from customers and after calculating the change in the value of its oil over the past month, based on yields and product prices.

Saudi crude OSPs set the trend for Iranian, Kuwaiti and Iraqi prices, affecting about 9 million barrels per day (bpd) of crude bound for Asia.


Free Trial: Access 13,300 Tank Terminal and Production Facilities

13,300 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data

Wood Bags Six-Year Contract on Shell’s Prelude Facility
07.12.2024 - NEWS
July 12, 2024 [Yahoo Finance]- Shell has awarded a six-year contract to engineering company Woo... Read More
Malaysia’s Bintulu LNG Plant to Get First Supplies from Jerun Gas Field
07.12.2024 - NEWS
July 12, 2024 [LNG Prime]- Malaysia’s giant Bintulu LNG plant, operated by Petronas, will soon ... Read More
Rubis Terminal Rebrands as Tepsa, Building on Legacy and Embracing Evolution
07.12.2024 - NEWS
July 12, 2024 [Storage Terminals Magazine]- Rubis Terminal is excited to announce a strategic reb... Read More
Adnoc Awards Abu Dhabi Airport Tank Farm Project
07.11.2024 - NEWS
July 11, 2024 [MEED]- Abu Dhabi National Oil Company (Adnoc) has awarded the main engineering, pr... Read More