Asia refiners expect Saudi Arabia to cut August crude prices

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Steam is emitted from a oil refinery in Sodegaura, Japan February 8, 2017.

Asian refiners expect Saudi Arabia to lower prices for its crude supply to the region in August, a Reuters survey showed, even as the top oil exporter pledged to deepen production cuts in July as part of a broader OPEC+ deal.

Saudi Arabia in June unexpectedly raised prices for July-loading cargoes, eating into Asian refiners’ margins.

To support global prices depressed by rising interest rates and recessionary fears, the producer volunteered to cut output by 1 million barrels per day (bpd) in July on top of a broader OPEC+ deal to limit supply into 2024.