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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
In a sign of oversupply in the oil market, Saudi Arabia is likely to cut its official selling prices for crude oil to Asia in August to a four-month low, a Reuters survey showed. The expected reductions come after spot crude markets tumbled on rising Middle Eastern supplies, pressuring prices.
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Sign InThe price-cut expectations come amid a broader decline in global crude benchmarks, with Brent crude trading around $84.50 per barrel at the June 25 close and West Texas Intermediate (WTI) near $80.20, per market data. The pressure on Saudi official prices has coincided with weaker seasonal demand in Asia and rising exports from Iraq and Iran, intensifying competition for market share.
Traders await the official Saudi OSP announcement, expected in the first days of August, which will signal the kingdom’s strategy in the face of ample supply. Markets will also focus on demand data from China and India, Asia’s largest crude importers, to gauge near-term price direction. A sharp cut, if confirmed, could further weigh on crude futures.