SINGAPORE (Reuters) – 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.
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.
Saudi term crude supplies to
Asia are priced as a
differential to the Oman/Dubai
average:
May APRIL CHANGE
SUPER 1.75 4.05 -2.30
LIGHT
EXTRA 1.00 3.30 -2.30
LIGHT
LIGHT 1.20 3.50 -2.30
MEDIUM 0.65 2.95 -2.30
HEAVY -0.50 1.80 -2.30
(Reporting by Siyi Liu in Singapore and Ahmed Tolba in Cairo; Editing by Elaine Hardcastle)
