Saudi Arabia's crude oil prices for August sales to Asia may be sharply reduced.

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Jin10 Finance reports that on June 26, a Reuters survey showed that as the Middle East spot crude oil market has fallen sharply due to increased supply, Saudi Arabia may significantly lower its official selling price for crude oil sold to Asia in August to a four-month low. Industry sources in the survey said that the official selling price for flagship Arab Light crude in August may be a premium of $1.50 to $3.00 per barrel over the Dubai/Oman average, which would be $6.50 to $8.00 per barrel lower than the July official selling price. Official selling prices for other Saudi crude grades are also expected to fall by the same margin. The anticipated price cut comes after a notable recent deterioration in the Middle East spot crude market. Dubai spot differentials turned to a discount of $1.64 per barrel this week, the lowest level in six years.
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