Saudi Aramco cuts July oil price to Asia by $6

Saudi Aramco cut its July Arab Light official selling price to Asia by $6 per barrel, deeper than the $3–$8 reduction traders had expected.reuters
The premium hit a record $19.50 in May after the Strait of Hormuz disruptions; it has now been halved over two months but remains historically elevated.bloomberg
India on Sunday raised domestic LPG prices by ₹29 per cylinder, citing a 46% rise in Saudi LPG contract prices since February.indiatoday

Saudi Aramco Cuts July Arab Light Oil Price to Asia by $6

Saudi Aramco has reduced its July official selling price for Arab Light crude to Asia by $6 per barrel, setting it at $9.50 above the Oman/Dubai benchmark — a deeper cut than the $5 reduction expected by traders and refiners surveyed by Bloomberg.

The move marks the second consecutive monthly reduction from the record $19.50 premium set for May loadings, when the widening Middle East conflict and near-closure of the Strait of Hormuz sent pricing to unprecedented levels. For June, Aramco had already cut the premium by $4 to $15.50.republicworld

Asia Gets Relief, but Premium Remains Historically Elevated

Despite the latest cut, the $9.50 premium remains near its highest level in decades when compared with pre-crisis levels. As recently as early 2026, the Arab Light premium to Asia hovered near zero or slightly above; the May 2026 record of $19.50 was a $17-per-barrel surge in a single month. A Reuters survey published on May 28 had forecast a July reduction of $3 to $8, placing the final result at the lower end of expectations.reuters

The pricing serves as a key signal of how the world’s largest crude exporter views near-term demand. The second straight cut suggests Aramco sees some easing in the supply tightness that gripped markets after Strait of Hormuz disruptions earlier this year, even as oil prices remain well above $100 per barrel.facebook

India Defends LPG Price Hike Amid Soaring Saudi Benchmarks

The crude pricing adjustment comes as India on Sunday raised domestic LPG prices by ₹29 per 14.2-kg cylinder, the second increase in three months. The Indian Petroleum Ministry defended the hike, noting that Saudi Aramco’s LPG contract price — the global benchmark for cooking gas — has risen roughly 46% since February, climbing from $542.50 per tonne to $790 per tonne in June due to supply disruptions in West Asia.indiatoday

The ministry said the actual cost of supplying a domestic LPG cylinder now exceeds ₹1,600, with public sector oil marketing companies absorbing under-recoveries of about ₹700 per cylinder. Even after the revision, India’s effective consumer price remains at a discount of about 45% to international levels, the government said.indianexpress