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.
