Saudi Arabia, the world’s top oil supplier, has cut crude prices for Asian buyers to near-four-year lows, fuelling speculation that it is attempting to reclaim market dominance. The decision follows OPEC+’s recent decision to accelerate oil output increases.
Saudi Aramco, the state-owned oil company, reduced the official selling price for Arab Light crude in May by $2.30 per barrel, putting it $1.20 higher than the averages in Oman and Dubai. This is the steepest price decline in more than two years, and
The action followed OPEC+’s surprising decision to increase oil output by 411,000 barrels per day in May, double the planned increase and accounting for 0.4% of world supply.
The price adjustment may be due to Iraq and Kazakhstan exceeding production expectations. Analysts expected a price decrease of $1.80 to $2.00, in line with declining benchmark prices. Furthermore, increased Russian oil supplies to Asia have helped to reduce Dubai crude premiums, which fell from $3.33 per barrel in February to $1.38 in March.
Furthermore, increased Russian oil supplies to Asia have helped to reduce Dubai crude premiums, which fell from $3.33 per barrel in February to $1.38 in March.
