Oil Prices: Saudi Cuts Asia Prices, USD/CAD Eyes Support at 1.4350

Saudi Aramco's decision to lower July Arab Light crude prices to Asia by $0.20/barrel while raising Northwest Europe prices by $1.80/barrel signals diverging regional demand dynamics, impacting commodity currencies. The price cut to $1.20/barrel above Oman/Dubai average (down from $1.40 in June) reflects softer Asian demand outlook, potentially weighing on AUD/USD and NZD/USD given their correlation with Chinese growth expectations. Conversely, USD/CAD remains supported near 1.4350 as lower oil prices pressure the Canadian dollar, despite WTI holding above $73.50. The contrasting pricing strategy - cuts for Asian light/medium grades while maintaining Arab Heavy unchanged - suggests selective demand weakness rather than broad oversupply concerns. Traders should monitor the 1.4300 psychological support for USD/CAD, with a break potentially accelerating CAD weakness toward 1.4400.