Global Market: Asian refiners turn to cheaper Gulf oil despite Saudi price cuts

Saudi Arabia cut its August official selling price for Arab Light crude to $1.50 per barrel below the Oman-Dubai benchmark, an $11 reduction from July, amid easing Middle East supply concerns following a US-Iran interim agreement. However, competing Gulf producers such as ADNOC, Iraq's SOMO and Kuwait Petroleum Corp. are offering deeper discounts, with ADNOC's Upper Zakum grade priced $6-$8 per barrel below Dubai quotes. Weak Asian demand, particularly from China, and high freight costs for crude loaded inside the Persian Gulf are making Saudi barrels less attractive to Asian refiners despite the price cuts.