Uncertainty Surrounds OPEC+ Supply Cuts and Global Oil Prices

Despite OPEC+ voluntary production cuts, Middle Eastern oil prices have not been boosted due to worsening market sentiment, refinery margin difficulties, and Chinese manufacturing data. Saudi Aramco has cut all its Asian formula prices for June-loading cargoes going to Asia, while ramping up the OSPs for European destinations. Saudi exports to the United States have halved year-on-year so far, averaging a meagre 230,000 b/d this year. Meanwhile, Iraq has rolled over Basrah Medium prices and increased Basrah Heavy formula prices by $0.10 per barrel compared to May. Iran has cut its Asian OSPs by $0.20 per barrel and $0.80 per barrel, respectively for Iran Light and Iran Heavy. Kuwait has lowered its Kuwait Export Crude OSPs to Asian customers by $0.70 per barrel to a $1.70 per barrel premium vs the Oman/Dubai average.