Middle East crude benchmarks, including Oman, Murban, and Dubai, experienced a decline on Thursday. This dip followed Saudi Arabia’s decision to reduce its July prices for Asian buyers, a move made in light of OPEC+ raising output for the fourth consecutive month. However, the price cut was less significant than anticipated. Saudi Aramco adjusted the official selling price for its flagship Arab light crude to Asia, setting it at $1.20 per barrel above the Oman/Dubai average, which is 20 cents lower than June’s price and the lowest figure since May.
In cash market movements, the premium of Cash Dubai to swaps decreased by 3 cents, settling at $0.79 per barrel. In other news, the Iraqi oil ministry stated on Thursday that it holds the Kurdish regional government (KRG) legally accountable for the ongoing smuggling of oil from the Kurdish region outside the country. This highlighted the complexities and challenges in regional oil governance. Additionally, a surge in investments in clean energy is projected to generate a record $3.3 trillion in global energy expenditures by 2025, according to the International Energy Agency (IEA).
This growth is expected despite prevailing economic uncertainties and geopolitical tensions that have been affecting markets. Moreover, global commodity trading company Trafigura reported a slight year-on-year increase in net profit to approximately $1.52 billion for the first half of its 2025 financial year. However, this growth occurred alongside a decline in revenues, attributed to lower average commodity prices.