Saudi Arabia Lowers Crude OSP To Asia

Saudi Arabia lowered oil prices for customers in its main market of Asia after futures slumped with traders worrying about the global economy according to Bloomberg.

• Saudi Aramco cut all official selling prices for Asia in June. The company’s key Arab Light grade was reduced to $2.55/bbl above the regional benchmark, 25 cents less than the price for this month. A Bloomberg survey of refiners and traders from last week forecasted a slightly bigger drop of 45 cents.
• A softening US economy and weak manufacturing data in China have triggered a renewed drop in crude prices, while refining margins have sunk.
• The cut of prices was anticipated as refiners hit by declining fuel prices have considered reducing output, while China and India snap up cheap Russian crude instead of Middle Eastern barrels.
• Last month following the OPEC+ surprise output cut, Saudi Arabia hiked the OSP for all its oil sales to Asian customers for May. Saudi Aramco raised its selling price for flagship Arab Light crude to Asia by 30ct/bbl.