Saudi Arabia Aggressively Cuts Crude Prices as Asian Demand Slumps

For Asian buyers, the flagship Arab Light crude will now carry a premium of $9.50 per barrel over the Oman/Dubai benchmark, a steep $6 reduction from June levels. This move exceeds the market consensus, as refiners and traders surveyed by Bloomberg had anticipated a more moderate adjustment of roughly $5 per barrel. The aggressive pricing strategy reflects a broader trend of cooling consumption, particularly in China, where the appetite for Middle Eastern crude has softened in recent weeks.

The price adjustments extend well beyond Asia. Saudi crude bound for the Mediterranean and Northwest Europe has seen a $10 per barrel reduction against ICE Brent, while U.S.-bound shipments are priced $2 cheaper relative to the ASCI benchmark. These cuts follow a period of declining spot premiums for both Oman and Dubai crude throughout May, signaling that the global market is finally cooling after reaching record-high premiums earlier this spring.