By Robert Harvey

LONDON, June 5 (Reuters) - Saudi Arabia set its flagship

Arab Light crude oil official selling price (OSP) to Asia at

plus $2.40 versus Oman/Dubai average for July, a document seen

by Reuters showed on Wednesday.

That marks a 50 cent per barrel cut from the June OSP, the

first cut in five months and towards the lower end of market

expectations according to a Reuters survey.

Its OSPs for other crude grades sold to Asian customers were

slashed by 40-60 cents, the document showed.

Refining sources expected state oil giant Saudi Aramco

to cut its prices in Asia because of falling Middle

East crude benchmarks and weaker profit margins for Asian

refiners.

The potential price reduction for Asia, which accounts for

82% of Saudi Arabia's oil exports, underscores the pressure

faced by producers in the Organization of the Petroleum

Exporting Countries (OPEC), amid robust non-OPEC supply growth

and a global economy facing headwinds.

OPEC agreed to extend most of its deep oil output cuts well

into 2025 at its meeting on June 2, as it seeks to shore up the

market against tepid demand growth and high U.S. production.

Aramco also set the Arab Light OSP to Northwest Europe at

plus $3.10 versus Ice Brent, a hike of $1 per barrel from June,

according to the document.

It hiked its OSPs to both Northwest Europe and the

Mediterranean by $1 per barrel across the board.

For buyers in the United States, the Arab Light OSP was set

at plus $4.75 versus ASCI. All of its July OSPs to the United

States were unchanged from June levels, the document showed.

Aramco sets its crude prices based on recommendations from

customers and after calculating the change in the value of its

oil over the past month, based on yields and product prices.

Saudi crude OSPs set the trend for Iranian, Kuwaiti and

Iraqi prices, affecting about 9 million barrels per day (bpd) of

crude bound for Asia.

Saudi term crude supplies to Asia are

priced as a differential to the

Oman/Dubai average:

JULY JUNE CHANGE

SUPER LIGHT NA 3.45 NA

EXTRA LIGHT 2.20 2.80 -0.60

LIGHT 2.40 2.90 -0.50

MEDIUM 1.95 2.35 -0.40

HEAVY 1.20 1.60 -0.40

Prices at Ras Tanura destined for United

States are set against ASCI:

JULY JUNE CHANGE

EXTRA LIGHT 7.00 7.00 0.00

LIGHT 4.75 4.75 0.00

MEDIUM 5.45 5.45 0.00

HEAVY 5.10 5.10 0.00

Prices at Ras Tanura destined for

Northwest Europe are set against ICE

Brent:

JULY JUNE CHANGE

EXTRA LIGHT 4.70 3.70 1.00

LIGHT 3.10 2.10 1.00

MEDIUM 2.30 1.30 1.00

HEAVY -0.10 -1.10 1.00

Prices at Ras Tanura for Saudi oil

destined for the Mediterranean are set

against ICE Brent:

JUNE JUNE CHANGE

EXTRA LIGHT 4.70 3.70 1.00

LIGHT 3.00 2.00 1.00

MEDIUM 2.40 1.40 1.00

HEAVY -0.30 -1.30 1.00