Saudi Arabia cuts oil prices to Asia to four-month low

On Sunday, Saudi Arabia, the leading oil exporter globally, reduced crude oil prices for Asian customers in May to their lowest level in four months following a surprising decision by the OPEC+ oil coalition to boost supply on Thursday.

The state oil firm Saudi Aramco has reduced the May official selling price (OSP) for its main Arab Light crude by $2.30, bringing it to $1.20 a barrel over the average prices of Oman and Dubai, according to a pricing document from the company.

The firm additionally reduced April costs for various grades it provides to Asia by $2.30 per barrel.

This marks the second month in a row that Aramco has decreased its prices. On Thursday, eight OPEC+ nations unexpectedly reached a consensus to accelerate their strategy to gradually eliminate oil output reductions by raising production by 411,000 barrels daily in May, a choice that led oil prices to deepen previous significant declines.

Before the news, the anticipated price for Arab Light in Asia was projected to decrease by $1.80 to $2 according to a Reuters survey, reflecting the significant drops in benchmark prices in March.

The Dubai spot premium averaged $1.38 per barrel in March, a decrease from February’s average of $3.33 per barrel due to increased Russian supply re-entering Asia starting in March.