ARAMCO Saudi Arabia has reduced crude oil prices for Asian buyers for the month of April, which represents the first price decrease in three months. The amendment is in line with the market expectations and follows OPEC+decision to gradually increase oil production, starting this month.
According to an official statement, the official sale price (OSP) for Arab light crude has been reduced by 40 cents, and is now $ 3.50 a barrel over the average of Oman and Dubai Crude. This is followed by the highest level in 12 months at $ 3.90 for the barrel registered last month.
Other Saudi crude grades have seen price cuts. OSP for Arab Extra Light is now $ 3.30 a barrel, while Arab Super light is set at $ 4.05 a barrel. The price of the Mediterranean Arab crude has been reduced to $ 2.95 a barrel, and heavy Arab crude is now at $ 1.80 a barrel. For buyers in North America, ARAMCO has assigned Arab Light OSP at $ 3.80 a barrel over the Argus Sour raw index for the month of March.
The price amendment follows the OPEC+decision to increase oil production by 138,000 barrels per day starting in April, which represents the first production increase since 2022. Meanwhile, Russian and Iranian oil exports to China have increased, with the benefit of tankers not based on the lucrative market conditions, which helps to stabilize the supply.
Saudi Aramco classifies its raw oil to five degrees based on the density: super light (above 40), additional light (36-40), light (32-36), Mediterranean (29-32), and heavy (less than 29). These price changes affect about 9 million barrels per day of crude oil that is shipped to Asia, determining the price standards for other major oil exporters, including Iran, Kuwait and Iraq.
Aramco usually declares its raw raw on the fifth of each month, which affects the trends of pricing in the global oil market.
