Saudi Arabia has slightly lowered the official selling price for its flagship Arab Light crude oil to Asia in September, according to a pricing statement released on Thursday.
State oil company Saudi Aramco set the OSP for Arab Light to Asia at $2 a barrel below the Oman/Dubai average for September, the document showed.
That marks the lowest level since June 2020 and compares with minus $1.50 a barrel in the previous month, when the kingdom cut the price by the biggest amount in more than two decades.
The small cut for September OSPs followed a decline in the spot benchmark price last month as spot Dubai cash premiums and Oman both averaged lower.
Oil market participants are also watching Iran-Oman talks this week for signs of progress towards a peace deal that could lead to the reopening of the Strait of Hormuz, through which about 20 per cent of global oil and liquefied natural gas supplies flow.
Benchmark Brent crude futures have returned to levels last seen when the US and Iran reached an interim peace agreement on June 17.
September OSPs Arab Medium and Arab Heavy were each raised by $1.25 a barrel.
Aramco also cut OSPs for Europe, US and the Mediterranean.
Alongside the OSP release, Aramco asked Asian customers to submit crude nominations by August 7 for loading at Ras Tanura, its main export terminal inside the Strait of Hormuz, as well as alternative nominations from Yanbu or Sidi Kerir in case the strait remains closed, sources said.
Aramco said volumes available from the two alternative ports were limited and only Arab Light crude would be available.
In a further escalation of the Iran war, the Iran-aligned Houthis in Yemen attacked Saudi ships and oil facilities in the Red Sea, reducing visible crude loadings from Yanbu.
Since then, Saudi Aramco has offered additional crude cargoes for loading from Egypt's Mediterranean port of Sidi Kerir, a rerouting that lengthens voyages to Asian refiners and raises freight costs.
(Reporting by Siyi Liu, Ashitha Shivaprasad and Pablo Sinha; Editing by Toby Chopra and Alexander Smith)
