Saudi Arabia has lowered its crude oil prices for Asian buyers for May, marking the second straight monthly cut, as global oil markets react to a surprise decision by OPEC+ to ramp up output.
According to a pricing document released on Sunday, state-owned energy giant Saudi Aramco reduced the official selling price (OSP) of its flagship Arab Light crude by $2.30 per barrel, setting it at $1.20 above the average prices of Oman and Dubai crude. This marks the lowest price level in four months.
Prices for other crude grades sold to Asia have also been trimmed by the same margin, further signalling Aramco’s effort to stay competitive in a shifting market.
The move comes just days after eight members of the OPEC+ alliance caught the market off guard by agreeing to bring forward their planned increase in oil production. Beginning in May, the group is set to boost output by 411,000 barrels per day, a decision that sent global oil prices into a fresh slump.
Market watchers had already anticipated a price drop for Arab Light in Asia, with a Reuters poll predicting a decline of around $1.80 to $2 per barrel. The actual reduction, however, turned out to be steeper, in line with the broader downward pressure on global benchmarks.
Dubai’s spot premium, a key indicator for pricing in the region, averaged $1.38 per barrel in March—down significantly from $3.33 in February. Analysts attribute the fall to increased Russian crude flowing into Asia, which has added to regional supply and weighed on prices.
With Aramco’s latest adjustment, buyers in Asia could see some relief in procurement costs, although the long-term outlook remains uncertain amid the evolving dynamics of global oil supply.
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