Investing.com -- Saudi Arabia set its August Arab Light crude oil official selling price to Asia at $1.50 per barrel below the Oman/Dubai average, marking the lowest level since June 2020, several media outlets reported Monday.

The price adjustment represents a substantial shift from the previous month, when the official selling price stood at a premium of $9.50 per barrel.

The reduction follows a decline in spot crude markets driven by increased Middle Eastern supplies.

Market participants had anticipated a smaller adjustment, expecting a premium of $1.50 to $3.00 per barrel above the Dubai and Oman average.