Saudi Arabia cut the price of its main crude grade to Asia to the lowest level in five years, amid persistent signs of a surplus in global oil markets.
State producer Saudi Aramco will reduce the price of its flagship Arab Light crude grade to a 60 cents premium to the regional benchmark for January, according to a price list seen by Bloomberg. That’s the lowest since January 2021. The cut was fractionally bigger than an expected 30 cents a barrel reduction, according to a survey of refiners and traders.
The Organization of the Petroleum Exporting Countries and its allies affirmed over the weekend a previous decision to pause production increases in the first quarter of next year. They will then consider resuming a program to roll back output quotas as the group seeks to reclaim market share. OPEC+ is eyeing weaker seasonal demand during winter months across much of Asia, Europe and North America.
Crude prices are down about 16% this year as booming supply from the Americas in tandem with hikes from the OPEC+ grouping itself exceeded subdued demand growth. The International Energy Agency has predicted a record glut in 2026, while Wall Street banks including Goldman Sachs Group Inc. see futures heading lower. Oil markets have also had to navigate the impacts of global trade disputes, wars and sanctions through this year.
