Saudi Aramco just did something it hasn’t done since the pandemic gutted global energy markets. The state oil giant slashed its official selling price for Arab Light crude to Asia by $6 per barrel for July 2026 loadings, bringing the premium down to $9.50 over the Oman/Dubai benchmark from $15.50 in June.
That’s the largest single monthly cut since 2022, and it’s the second consecutive month of reductions. The culprit is familiar: China’s appetite for crude is shrinking.
What’s behind the price cut
China, which has been the gravitational center of global crude demand for years, is pulling back. Refining activity has declined, export rates are lower, and the country’s crude imports have softened meaningfully.
The $6 cut wasn’t limited to Arab Light, either. Other Saudi crude grades destined for Asian buyers saw identical reductions. Aramco also adjusted prices for European and US markets, though those tend to attract less attention since Asia accounts for the bulk of Saudi exports.
