Saudi Arabia To Raise September OSPs: Reuters Survey

Saudi Arabia may raise its price for Arab Light crude for sale to Asian refiners by 45 cents for a third month as the voluntary output cuts are expected to be extended into September according to a Reuters survey of five refining sources.

• Saudi Aramco may raise the OSP for Arab Light crude in September by about 45 cents from August to $3.65/bbl above Oman/Dubai quotes, which would be the grade's highest premium this year.
• A Bloomberg survey suggested Saudi Aramco may raise the OSP for September Arab light by 50 cents to a $3.7/bbl premium to Oman-Dubai benchmark.
• Saudi Arabia has said it will cut its production by 1mbpd in July and August, but market participants and analyst forecast the country will further extend the cut into September when OPEC+ holds its monthly JMMC meeting on 4 August.
• Most of the survey respondents expected Saudi Arabia to raise prices for heavier grades Arab Medium and Arab Heavy by more than Arab Extra Light as the light crude is oversupplied.
• Saudi Aramco's OSPs are usually released around the 5th of each month.