Why is Saudi Arabia expected to sharply cut its August oil prices for Asia?

Saudi Arabia is expected to sharply cut its August official selling prices (OSPs) for crude oil to Asia due to a sharp deterioration in Middle East spot crude markets, driven by rising regional supplies—including resumed crude cargoes transiting the Strait of Hormuz after the ceasefire, increased offerings from the UAE, Iraq, Qatar, and anticipated higher Iranian exports following a temporary U.S. sanctions reprieve—as well as globally weakened physical differentials from West Africa, Brazil, and the U.S., all contributing to ample supply and downward price pressure.

What is the expected August OSP for Saudi Arab Light crude to Asia, and how does it compare to July's level?

The August OSP for Saudi flagship Arab Light crude is expected to fall to a premium of $1.5 to $3 per barrel above the average Dubai and Oman quotes—$6.5 to $8 per barrel lower than the July OSP—marking a four-month low, according to a Reuters survey of four industry sources.

Saudi Arabia Expected to Sharply Cut August Oil Prices for Asia Amid Supply Recovery

Jun 25, 2026

Saudi Aramco is expected to sharply cut August crude oil prices for Asia to a four-month low amid improved supply conditions. Market sources cite easing geopolitical tensions and resumed shipments through the Strait of Hormuz as key drivers for the adjustment.

reuters

2026-05-09

Aramco Q1 Profit Jumps 25% as Hormuz Risks Push Pipeline to Full Capacity

2026-05-10

Aramco CEO warns 1 billion barrels lost will slow oil market recovery

2026-05-11

Strait of Hormuz Disruption Could Push Oil Market Recovery into 2027, Aramco CEO Says

2026-06-25

Saudi Aramco Resumes Oil Loading at Ras Tanura After 4-Month Halt, Data Shows

2026-06-25

Saudi Arabia Expected to Sharply Cut August Oil Prices for Asia Amid Supply Recovery