Why did Saudi Arabia cut its June oil prices for Asia, and how does the new premium compare to May's record level?

Saudi Arabia cut the price of its flagship Arab Light crude for Asia in June by $4 a barrel to a premium of $15.50 over regional benchmarks, down from a record-high premium in May; although reduced, this June premium remains the second-highest on record, reflecting continued severe supply disruptions caused by the ongoing Middle East war and the near-total closure of the Strait of Hormuz.

How is Saudi Arabia still able to export oil despite the Strait of Hormuz being largely shut?

Saudi Arabia remains one of the few Gulf producers still able to export crude because it uses a pipeline that delivers oil to the western port of Yanbu on the Red Sea coast—bypassing the blocked Strait of Hormuz—unlike most other Gulf producers whose access to global markets has been largely cut off.

Saudi Arabia Cuts Oil Prices for June From Record-High Premium

May 5, 2026

Saudi Aramco cut Arab Light crude premiums for June by $4 to $15.50, remaining near record highs as Middle East conflicts disrupt supply routes through the Strait of Hormuz.

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