Arab Light OSP may fall by 55.50bbl survey
Record refining margins in Asia may support prices

SINGAPORE, April 29 Reuters Top oil exporter Saudi Arabia may cut prices for crude grades sold to Asia in June after benchmarks slumped from records in the previous month as COVID lockdowns curbed demand in China, the world39;s biggest crude importer, traders said on Friday.

Global markets were rattled last month by western sanctions on Russia, the world39;s biggest combined crude and oil products exporter, that could curb supplies, pushing Middle East spot premiums and term prices to record highs.

However, COVID19 restrictions across China cooled demand causing prices to tumble this month. Also, large volumes of Russian oil displaced by European sanctions are still heading to China and India while Japan and South Korea are releasing strategic oil reserves, easing supply concerns.

To reflect these changes, state oil company Saudi Aramco is expected to cut the official selling price OSP for flagship Arab Light crude in June by 55.50 a barrel from a record premium of 9.35 a barrel above the average of Platts Dubai and Dubai Mercantile Exchange Oman quotes, a Reuters survey of seven refining sources showed.

The price cuts are because of weak refining margins in China from the COVID lockdowns and a lack of product export quotas that prevent Chinese refiners from shipping out excess fuel, one respondent said.

Another respondent, the only one who is expecting smaller price…