Introduction
Saudi Arabia is likely to lower its official selling prices (OSP) for crude oil to Asian buyers in July for the second month running, as weak spot market demand and reduced Chinese refinery activity outweigh the supply disruptions caused by tensions in West Asia, according to a Reuters survey of industry sources.
The July official selling price for Arab Light crude — Saudi Arabia's flagship grade — is expected to be set at a premium of $7.50 to $12.50 a barrel above the average of Dubai and Oman quotes, five industry sources told Reuters. That would represent a cut of $3 to $8 a barrel compared with the June price, following an already softening spot market through May.