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Saudi OSP's for August Expected to Cut Again: Survey

OIL

Saudi may cut OSP’s for Asia for a second month in August following weakness in Middle East benchmark Dubai according to a Reuters survey.

  • The OSP for flagship Arab Light crude sold to Asia in August may fall by 60 cents to 80 cents a barrel from July.
  • The respondents expect slightly deeper price cuts for heavier grades - Arab Medium and Arab Heavy - than Arab Light because of improved supply from Canada (due to TMX) and Mexico (due to refining issues)
  • Chinese refiners have been showing weakness for Saudi crude at current prices.

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