Saudi Arabia is preparing to significantly reduce its official selling prices (OSPs) for crude oil supplied to Asian buyers, a move that could bring relief to major importers, including Pakistan.
According to a Reuters report, Saudi Arabia is expected to lower its August crude oil OSPs due to weaker global demand, rising supply, and increasing pressure on Middle Eastern oil markets.
The report said the price of Arab Light, Saudi Arabia’s flagship export grade, could be reduced by $6.50 to $8 per barrel. If implemented, the premium of Arab Light over the Oman and Dubai benchmarks would fall to $1.50 to $3 per barrel, marking its lowest level in four months.
Oil markets in the Middle East have weakened in recent weeks, with Dubai crude premiums declining steadily and Oman spot differentials falling to multi-year lows, reflecting an oversupply in the global market.
Saudi state oil giant Aramco has also resumed crude loading from its Ras Tanura export terminal after nearly four months, a development expected to further improve global crude availability and support lower prices.
If Saudi Arabia confirms the expected price cuts, refiners in major Asian importing countries—including China, Pakistan, India, Japan, and South Korea—could benefit from cheaper crude, potentially reducing fuel production costs and easing pressure on energy sectors.
Experts say Pakistan could also benefit if global crude prices remain at current levels or decline further, creating room for another reduction in domestic petroleum prices during the next fortnightly review. However, the final decision will depend on international prices, import costs, the exchange rate, and government policy.
Saudi Arabia typically announces its monthly crude oil selling prices for Asian, European, and US buyers around the 5th of each month. If the anticipated August reduction is confirmed, it would rank among the biggest cuts in crude oil prices this year.
Also Read: Nihang Sikhs breach Uttarakhand border after fierce Chamoli clashes
