SINGAPORE: Top oil exporter Saudi Arabia will cut or keep steady the official selling prices (OSPs) of most of its crudes to Asia for next month as refining margins come under pressure, refiners and traders polled said yesterday.

The eight refiners and traders polled expected Arab Heavy's discount to Oman/Dubai to be widened, and none forecast Arab Light or Extra Light's premiums to rise further.

"With the current levels, we cannot find good economics for heavy grades," a trader with a refiner said, as he noted that Bahrain's Banoco Arab Medium, which is priced off the Arab Medium OSP, had last traded at discount for August loading.

Saudi crude OSPs are usually released around the fifth of each month, and set the trend for Iranian, Kuwaiti and Iraqi prices, affecting some seven million barrels per day (bpd) of crude heading to Asia.

Refining margins last month turned negative in Asia for Dubai crude run in a simple refinery, leading to a 40-cent loss for refiners, Reuters data show, while margins at a complex refinery would have averaged a $3.00 profit, the lowest monthly average since November last year.