SINGAPORE: Saudi Arabia, the world’s top oil exporter, on Sunday lowered crude oil prices for Asian buyers in May to their lowest in four months, after a shock decision by the OPEC+ oil group to increase supply on Thursday.
State oil company Saudi Aramco cut the May official selling price (OSP) for flagship Arab Light crude by $2.30 to $1.20 a barrel above the average of Oman and Dubai prices, a pricing document from the producer showed.
The company also lowered April prices for other grades it sells to Asia by $2.30 per barrel.
This is the second consecutive month Aramco has lowered its prices. Eight OPEC+ countries unexpectedly agreed on Thursday to advance their plan to phase out oil output cuts by increasing output by 411,000 barrels per day in May, a decision that prompted oil prices to extend earlier sharp losses.
OPEC+ panel stresses compliance after surprise oil output hike
Prior to the news, Arab Light price for Asia had been expected to fall by $1.80 to $2 in a Reuters survey, tracking the steep declines in benchmark prices in March.
Spot premium of Dubai averaged at $1.38 per barrel in March, down from $3.33 per barrel, the average in February following more Russian supply returning to Asia since March.
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