Saudi Arabia seen cutting June crude prices for Asia – Reuters survey

The world’s biggest oil exporter, Saudi Arabia, is likely to slash its official selling prices (OSPs) for Asia next month, in response to weakness in Middle East benchmark Dubai and demand uncertainty amid a new coronavirus wave in the region, a Reuters survey showed.

Key points

“The June OSP for flagship Arab Light crude to decrease by an average of 28 cents a barrel, which would become the producer’s first price reduction since December last year.”

“(What’s) more important (is) how first-week sales for May will pan out. Basis that call will be taken for (crude) nomination.”

“Asia’s refining margins for gasoline, gasoil, jet fuel and 0.5% very low-sulfur fuel oil (VLSFO) strengthened in April, while the naphtha crack weakened.”

Market reaction

The US oil stands resilient to the news of a potential cut in the June crude prices for Asia, as WTI hit fresh two-month highs at $66.52 in the last hour.