Saudi Arabia hikes most August oil prices to Asia after supply cuts

Saudi Arabia hikes most August oil prices to Asia after supply cuts

Top oil exporter Saudi Arabia has raised the prices for most its crude oil to Asian customers in August for a second month, after its announcement of prolonging an extra output cut on top of a broader OPEC+ deal. Saudi Aramco hiked the official selling prices (OSP) for August-loading Arab Light to Asia by 20 cents a barrel from July to $3.20 a barrel over Oman/Dubai quotes, the state oil giant said in a statement. The price increase was largely anticipated by the market, although some Asian refiners surveyed by Reuters before Saudi Arabia's pledge to extend the production cut were expecting a price cut of about 50 cents amidst poor refining margins and competition with crude from other regions. Saudi Arabia on Monday announced it would draw out its 1 million barrels-per-day (bpd) voluntary cut to oil production to August and left the door open to extend the trim further. The de facto leader of the OPEC+ group raised its July OSPs to Asia last month shortly after it unexpectedly vowed a 1 million bpd voluntary in July. The more expensive Saudi oil would further weigh on the thin refining margins in Asia and prompt refiners to seek alternatives