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After Record $19.50 Premium, Saudis Eye Sharp Cut To June Asia Prices
Saudi Arabia, the world's leading crude oil exporter, is anticipated to lower its official selling prices (OSPs) for crude destined for Asia in June. This expected reduction follows record-high OSPs set for May, as Middle Eastern crude benchmarks have seen their premiums decrease this month. Industry sources surveyed by Reuters suggest Saudi Aramco will likely announce a cut of $5 to $12 per barrel for its flagship Arab Light crude. This adjustment would bring the premium for Arab Light to between $7.50 and $14.50 over the Oman/Dubai average for June loadings. In contrast, May loadings for Asia saw a record-high premium of $19.50. The previous significant price hike in early April was attributed to concerns over the Strait of Hormuz closure impacting oil flows. Saudi Arabia typically releases its monthly pricing around the fifth of each month. This pricing decision comes after OPEC+ meetings focused on market stability. Survey participants also expect reductions for all other Saudi crude grades by a similar margin for June. The significant divergence in price expectations highlights uncertainty among Asian refiners and traders due to the ongoing Strait of Hormuz closure and limited export routes.
