Saudi Arabia is expected to lower the price of crude oil for Asia in October.

A survey conducted by Reuters communications targeting petroleum refining industry insiders revealed the possibility that Saudi Arabia, the world's largest crude oil exporting country, may lower the price of crude oil for Asia in October due to the deterioration of refining margins in China and the Asia region, as well as the decline in Dubai benchmark prices.

According to a survey of 5 petroleum refining industry insiders, Saudi Aramco, the world's top crude oil exporting country, is expected to lower the Official Selling Prices (OSP) of all varieties of crude oil for Asia in October. Of the 3 sources at Reuters, it is expected that the price of Saudi Arabia's main crude oil, Arab Light, will be lowered by $0.50 to $0.70 per barrel from the September price. A $0.70 reduction would make the cost of Arab Light $2.00 per barrel higher than the Oman/Dubai average.

The Oman/Dubai average is the basis for the export price of Asian Middle Eastern crude oil.

According to a Reuters survey, the decline in the price of Arab Light and heavy oil types may follow the decline in Dubai prices in August.

However, due to the firm Dubai crude oil prices in the final week of August, it is expected that the October Saudi crude oil prices for Asia will remain stable or have little change.

Saudi Arabia usually announces the OSP for the following month around the 5th of each month, and does not comment on the prices.

According to Reuters' survey, in addition to the movement of the Dubai benchmark, Saudi Arabia's OSP for next month may be influenced by the sluggish refining margins in Asia, especially China.

Generally, petroleum refiners are anticipating slight variations in the Saudi crude oil prices for Asia, but they are expected to be lower compared to the prices in September.

Saudi Aramco raised the price of its light crude oil for Asia for the first time in three months last month.

Considering the possibility that OPEC+ may partially ease production cuts from the same month, there is a possibility that the world supply from Saudi Arabia and the Middle East in October will be sufficient.