Saudi Aramco delays July formula crude price release

State-controlled Saudi Aramco plans to release its official formula crude prices for July on 7 June, according to three Mideast Gulf sources.

The company typically publishes its official prices in the first five days of the month that precede loading. But in the last few months, it has postponed its price releases — and consequently, its monthly term allocation process — to accommodate Opec+ meetings or to implement production cut decisions.

It is not clear if the delay this time is the result of next week's scheduled Opec+ discussions being brought forward. At the weekend, Opec presidency holder Algeria proposed holding the talks today. With the date of the meeting still unclear, Aramco's price release could yet be subject to change.

The Opec+ alliance's de facto leaders Saudi Arabia and Russia both back a proposal to extend the current 9.7mn b/d of cuts into July, according to an Opec delegate. This would constrain Aramco's crude supplies for next month, impacting its pricing. The current Opec+ agreement calls for Saudi Arabia to cap its crude production at 8.49mn b/d until the end of June and 8.99mn b/d over the second half of the year.

Rival sour crude suppliers in the Mideast Gulf — Iraq's Somo, Kuwait's KPC and Iran's NIOC — typically only release their official formula prices after Aramco, and often mirror its month-on-month adjustments to raise the competitiveness of their crude.

By Ruxandra Iordache