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Market Chatter: Saudi Arabia Likely to Cut Crude OSPs for Asian Buyers in August

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Saudi Arabia is expected to significantly reduce its crude oil official selling prices for Asian buyers next month following a decline in spot crude markets, according to a Reuters survey of industry sources published Thursday.

The August OSPs are projected to hit a four-month low, with OSP for Arab Light crude OSP expected to drop to $1.5-$3 a barrel premium over the average Dubai and Oman quotes, down $6.5-$8/barrel compared to July OSP, the report said.

Other Saudi grades are expected to see a similar fall in their OSPs for August, the report said.

Middle East spot crude markets have seen a sharp decline as their supply recovers. A weakening in global physical crude differentials and a potential increase in Iranian supply have further added to expectations of a price cut to attract buyers.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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