Saudi Aramco cut the official selling price for Arabian Light shipments to Asia
by $6/bbl for July, the second monthly reduction, lowering the premium to
$9.50/bbl over the Oman/Dubai average—wider than the $5/bbl cut refiners and
traders had expected. Despite the cut, the Asia premium remains near
multi-decade highs. Global oil flows continue to be disrupted as US-Iran talks
to extend a ceasefire have stalled and the Strait of Hormuz remains closed;
tankers trapped inside the Persian Gulf are blocking re-entry of empty ships,
prompting large Middle East output cuts, field shutdowns and refinery slowdowns
or stoppages.
