Saudi Aramco Slashes Asian Crude Price to Six-Year Low

Saudi Arabia's state oil company, Saudi Aramco, has set its official selling price for Arab Light crude oil to Asia at a six-year low in September. The OSP is now $2 a barrel below the Oman/Dubai average, marking the lowest level since June 2020.

This move follows a decline in spot benchmark prices last month due to lower cash premiums and Oman averages. Additionally, the Strait of Hormuz, through which about 20% of global oil supplies flow, has been affected by tensions between Iran and Saudi Arabia.

Benchmark Brent crude futures have returned to levels last seen when the U.S. and Iran reached an interim peace agreement on June 17. In response, Aramco asked Asian customers to submit nominations for crude loading at Ras Tanura, its main export terminal inside the Strait of Hormuz, by August 7.