Asia's July OSP from Saudi Arabia is significantly reduced due to low demand.

Oil prices to Asia plummeted by six dollars per barrel, yet remain elevated compared to pre-conflict levels. The previous peak had a chilling effect on consumer appetite.

For the second consecutive month, Saudi Arabia reduced its official selling prices for crude oil bound for Asia in July, a move anticipated by market observers, amidst easing spot premiums and sluggish demand.

A premium of $9.50 per barrel is now applied to Arab Light crude under the July OSP, according to a recent Saudi Aramco pricing document released on Monday. This premium is notably lower by $6 compared to the June OSP rate.

Saudi Arabian OSPs to Asia in July declined by a substantial $6 per barrel compared to June.

Market analysts had anticipated a price adjustment, which was reflected in the latest developments following a sluggish trading period in May's spot market.

Data from indicates that the cash Dubai price's premium to swaps was significantly lower in July, averaging just $9.59 per barrel, compared to $13.92 in April.

China's refineries have scaled back operations, depleting stockpiles as they absorb heavy refining losses, resulting in a substantial drop in the nation's oil import totals. The reduction in Saudi crude intake was evident in May and June.

Despite the Iran conflict, Asian imports continue to be priced at a premium compared to pre-war levels, due in part to reduced energy transit via the vital Strait of Hormuz.

Aramco has adjusted its July OSPs downward for various global markets as per the recent document.

Market analysts had anticipated a price adjustment,which was reflected in the latest developments following a sluggish trading period in May's spot market.