What is the expected reduction in Saudi Arabia's August official selling price for Arab Light crude to Asia, and how does it compare to July's premium?

Saudi Aramco is expected to cut the official selling price (OSP) for its flagship Arab Light crude to Asia by $6.50–$8.00 per barrel in August, bringing the premium over Dubai/Oman averages down to just $1.50–$3.00 per barrel — a sharp decline from July’s $9.50 per barrel premium and the lowest level in four months. This adjustment applies uniformly across all Saudi crude grades, including Arab Extra Light, Arab Medium, and Arab Heavy.

What are the main drivers behind Saudi Arabia's decision to slash its August OSP for Asian markets?

The primary driver is the preliminary reopening of the Strait of Hormuz following a U.S.–Iran interim agreement, which has led markets to price in restored navigation and caused Dubai, Murban, and Oman spot premiums to flip into discounts; concurrently, regional supply is rising — Iran has resumed oil exports following temporary sanctions relief, and Saudi Aramco has restarted crude loading operations at Ras Tanura port, further boosting availability. The price cut aims to stimulate demand from Asian refiners who had reduced Saudi crude purchases during prior supply disruptions and underscores Saudi Arabia’s effort to protect its market share amid rapidly eroding geopolitical premiums of $20–$25 per barrel.

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Saudi Arabia to Slash August Asia Crude Oil Official Selling Price

Jun 30, 2026

Saudi Aramco plans to cut its August official selling price for Asian crude by $6.50 to $8.00 per barrel, driven by the partial reopening of the Strait of Hormuz and increased regional supply.

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