RIYADH: In an official announcement on Wednesday, Saudi Aramco revealed that it has cut its official selling price for crude oil headed for Asia in July. The benchmark Arab Light crude price was lowered by $0.20 by the state-owned oil firm, bringing it to $1.20 per barrel above the average for Oman and Dubai.
Saudi Aramco uses five density-based categories to price its crude oil: Super Light (more than 40), Arab Extra Light (36-40), Arab Light (32-36), Arab Medium (29-32), and Arab Heavy (below 29).
Other significant regional producers, including as Iran, Kuwait, and Iraq, use the company’s monthly pricing choices as a benchmark for pricing and to influence the price of the approximately 9 million barrels of oil that are exported to Asia every day.
Aramco established the July OSP for Arab Light in the North American market at $3.50 per barrel over the Argus Sour Crude Index. Aramco bases its OSPs on refiners’ market input and a review of the changes in crude oil prices during the previous month, accounting for yields and product pricing.
The market is also being impacted by OPEC+ producers’ plans to boost supply by 411,000 barrels per day in July. However, there was some support since, according to Reuters calculations, wildfires decreased Canada’s output by around 344,000 barrels per day.
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