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6 April – Riyadh – Saudi Arabia, the world’s largest oil exporter, has significantly reduced the price of its crude oil for Asian customers in May. This followed an unexpected decision by OPEC+ countries to increase production, a move that further increased pressure on global prices.
State-owned Saudi Aramco has cut its official selling price (OSP) for Arab Light crude for Asia by $2.30 to $1.20 per barrel above the average price in Oman and Dubai. This is the lowest level since the beginning of the year, Reuters reports, citing official documents.
Prices have also been reduced for other oil grades that the company supplies to the region. This is the second month in a row that Aramco has cut prices.
Saudi Arabia’s decision came amid an unexpected agreement by eight OPEC+ countries on Thursday to accelerate the pace of lifting production restrictions. Since May, it is planned to increase daily production by 411,000 barrels, which has already triggered a new stage of price decline in global markets.
According to Reuters, even before the publication of Aramco’s decision, analysts had predicted a $1.80-2 per barrel decline in Arab Light prices.
One of the factors putting pressure on the market is the increase in Russian oil supplies to Asia since March. In March, the average spot premium for Dubai crude oil fell to $1.38 per barrel, down from $3.33 in February.
The price cuts by Saudi Arabia, a key OPEC player, could trigger a new round of competition in the Asian market, which remains strategic for global oil flows.
