Following OPEC+’s announcement that it plans to postpone production increases in the first quarter of 2026, Saudi Arabia acted to lower the prices it sells its main crude oil to Asia in December.
According to a price list obtained by Bloomberg, state oil company Saudi Aramco cut the price of its main grade Arab Light by $1.20 (RM5.02) a barrel, putting it at a $1 premium to regional benchmarks.
The reduction was slightly lower than analysts’ expectations for a cut of around $1.25.
The move came after Saudi Arabia and its OPEC+ allies decided to temporarily halt additional production early next year after a small increase in December to balance market needs with the risk of a global oversupply.
The move also reflected concerns about weak seasonal demand and the impact of new US sanctions on two major oil producers, Russia.
Brent crude oil prices have fallen by almost 15% this year and are now trading below $65 a barrel, with the price increase after the announcement of sanctions against Russia only temporary.
In addition to Arab Light, Aramco also cut the prices of its Medium and Heavy grades by $1.40 a barrel each, while Super Light and Extra Light grades were cut by $1.20 for the Asian market next month.
