Saudi Arabia cuts oil prices to Asia for first time in three months

Saudi Arabia, the world's top oil exporter, on Friday lowered crude oil prices for Asian buyers in April for the first time in three months, in line with market expectations and after OPEC+ agreed to gradually increase supply in the same month, reports Reuters.

State oil company Saudi Aramco lowered the April official selling price (OSP) for flagship Arab Light crude by 40 cents to $3.50 a barrel above the average of Oman and Dubai prices, a pricing document from the producer showed.

In the previous month Arab Light's OSP hit its highest in more than a year at $3.90 above the Oman and Dubai average after harsher U.S. sanctions on Russian oil disrupted global trade and caused oil prices and freight rates to spike.

The company also lowered April prices for other grades it sells to Asia.

The cut in Arab Light price for Asia was in line with the 20 to 65 cents cut forecast in a Reuters poll.

OPEC+, which pumps about half the world's oil, decided this week to proceed with a planned April oil output increase of 138,000 barrels per day, the group's first since 2022.

Meanwhile, Russian and Iranian oil supply to top importer China is rebounding in March as non-sanctioned tankers are drawn by lucrative payoffs, easing supply concerns.