Aramco OSP Raise Impacts August Requests

Two major European refiners have requested less Saudi crude for August while four will take normal volumes according to Bloomberg sources. All six were allocated the level they requested.

• Four Asian customers will take full contractual volumes for August loading, while two will reduce their intake.
• Last week, Saudi announced that its extra 1mn bpd voluntary production cut would extend from July into August while also leaving the door open for further extensions.
• Following the announcement, Aramco raised its official selling prices for August last week which is starting to impact allocations. It raised the prices of all grades to the US, northwest Europe and the Mediterranean, for next month compared with July.
• Reuters headlines from last week:
• Saudi Arabia Sets August Arab Light Crude Oil OSP To NW Europe At Plus $3.80/BBL To Ice Brent Settlement - Reuters
• Saudi Arabia Sets August Arab Light Crude Oil OSP To United States At Plus $7.25/BBL VS Asci – Reuters
• Saudi Aramco raises the official selling price (OSP) for Arab light for Asia for August by USD 0.20/bbl m/m to USD 3.20/bbl – Reuters
• See earlier Reuters snippet on Aramco allocated volumes for August: https://marketnews.com/saudi-to-supply-full-crude-volumes-to-asia-in-august-china-requests-less