Saudi Arabia sells crude at premium to Asian customers

Oil prices posted new multi-month lows yesterday, Brent priced for a time at below $49 per barrel - its lowest level since the end of January - and WTI dropping to a 4½-month low of nearly $44 per barrel. Prices have recovered slightly this morning, but lack the fundamental support that would be required for any more pronounced and lasting recovery, says Commerzbank. 

Admittedly, Saudi Arabia has increased its official selling prices (OSP) for Asian customers, and in September will be charging a 40 US cents per barrel premium for Arab Light as compared with the Oman/Dubai benchmark. This is the first premium in a year. That said, a steeper price hike had been anticipated beforehand given the robust demand, adds Commerzbank.