Saudi Aramco Cuts Asian Oil Prices as OPEC Pauses Supply Increases

Highlights:

• Saudi Aramco reduces price of Arab Light crude to Asia to its lowest level in 11 months
• Move follows OPEC+ decision to pause planned output increases
• Global crude markets remain pressured by weak seasonal demand and geopolitical uncertainty

Saudi Arabian Oil Company has reduced the official selling price of its flagship crude export for Asian buyers, signalling a cautious outlook for demand heading into the final months of the year. At the time of writing, crude benchmarks remain under pressure, with Brent trading below US$64 a barrel.

For December loadings, the company will price Arab Light at US$1 per barrel above the regional benchmark, reflecting a US$1.20 cut compared to the previous month. The adjustment marks the lowest premium in nearly 11 months, according to market pricing documents shared among regional refiners. Industry expectations had pointed to a slightly larger reduction, with trader surveys anticipating a US$1.25 cut.

OPEC+ Signals Caution Amid Shifting Market Conditions

The price revision follows the recent decision by OPEC+ members, including Saudi Arabia, to pause planned production increases during the first quarter of the year after implementing only a small supply boost in December. The move comes as producers balance the goal of protecting market share against concerns of an impending supply surplus.

Demand typically softens seasonally during winter, and the market is closely watching the effects of U.S. sanctions on Russia’s two largest oil producers, which may influence global supply flows.

Price Adjustments Extend Across Grades and Regions

For Asian customers, medium and heavy crude grades were reduced by US$1.40, while Super Light and Extra Light were trimmed by US$1.20. For the North American market, Aramco applied a US$0.50 per barrel price reduction, but made no changes to pricing for buyers in northwest Europe or the Mediterranean. The adjustments highlight Saudi Arabia’s effort to remain competitive in a softening global crude market.

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