Saudi Arabia cuts oil prices for Asia as OPEC+ accelerates output increases

The cut marks the largest single-month drop in more than two years and the second consecutive month of price reductions

Saudi Arabia, the world’s largest oil exporter, has reduced crude oil prices for Asian buyers for May to their lowest level in four months, following a surprise move by OPEC+ to speed up production hikes.

State oil giant Saudi Aramco has lowered the official selling price (OSP) for its flagship Arab Light crude by $2.30, setting it at $1.20 a barrel above the average of Oman and Dubai prices, according to a pricing document released on Sunday. The cut marks the largest single-month drop in more than two years and the second consecutive month of price reductions.

Aramco also slashed May prices for its other crude grades sold to Asia by $2.30 per barrel.

The decision follows an unexpected agreement by eight OPEC+ countries on Thursday to accelerate the phase-out of production cuts, increasing output by 411,000 barrels per day in May — triple the previously planned increment. This increase represents about 0.4% of global oil supply.

The announcement, combined with rising concerns over an escalating global trade war, triggered a sharp selloff in oil markets. Crude prices fell nearly 11% during the week ending April 4, reaching their lowest levels in more than three years.

In the physical market, the spot premium of Dubai crude averaged $1.38 per barrel in March, down from $3.33 per barrel in February. Analysts attribute the decline partly to the return of Russian crude supplies to Asia, following earlier disruptions linked to U.S. sanctions on Russia’s energy trade.

Monitoring Desk
Monitoring Desk
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