SUBSCRIBE
PROFILE

Saudi Arabia: reduction in the price of Arabian light crude oil

Saudi Arabia plans to cut the price of its Arabian light crude oil to Asia in June despite a further OPEC+ production cut. This decision is in response to falling fuel prices and growing demand for cheap Russian crude oil in China and India.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

SUBSCRIBE - 99$/year

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

In a surprise move, Saudi Arabia, the world’s largest oil exporter, may cut the price of its Arabian light crude oil to Asia in June. This decision was made despite a further reduction in production of OPEC+ and a recent increase in Middle Eastern crude oil prices due to supply problems in Asia. Saudi Aramcothe state-owned oil giant, may reduce the official selling price of its medium and sour crude by about 40 cents per barrel in June, after three months of price increases.

Middle East crude oil commercial contracts in Asia slow down

According to five people interviewed by Reuters, the move is a response to falling fuel prices and growing demand for cheap Russian crude oil in China and India. The refining margin for a typical Asian refiner, which processes Middle Eastern crude oil, hit a six-month low of $2.35 a barrel last Friday, and diesel margins fell 27% this month, while gasoline margins fell 49%.

As a result, the flow of commercial contracts for Middle Eastern crude oil to Asia has slowed, and some refiners are considering production cuts while many in the region have already set maintenance schedules for June-August. If oil prices continue to rise, refineries will have to scale back operations, reduce purchases and operate with low feedstock inventories before their turnarounds, according to one respondent.

Saudi Arabia takes action on falling fuel prices

The market also expects China to issue a new batch of refined product quotas soon, adding more supply to an already saturated market. Discounted Russian crude oil has been acquired by refiners in China and India, the world’s largest and third largest oil importers, replacing demand for Middle Eastern crude oil.

Saudi crude OSPs (official selling prices) are usually published around the 5th of each month and set the trend for Iranian, Kuwaiti and Iraqi prices, affecting about 9 million barrels of crude oil destined for Asia. Saudi Aramco officials do not comment on the kingdom’s monthly PSOs as a matter of policy.

In response to falling fuel prices and growing demand for cheap Russian crude oil in China and India, Saudi Arabia, the world’s largest oil exporter, plans to cut the price of its Arabian light crude oil to Asia in June. This decision was made despite a further OPEC+ production cut and a recent increase in Middle Eastern crude oil prices due to supply problems in Asia.

  • Popular on energynews.pro
West Holdings and Toshiba partner to deliver integrated solar and storage services
First Hydrogen launches project on molten-salt fuels for small modular reactors
Xing’an League allocates CNY6bn in public investment for hydrogen hub
Brussels denounces Chinese pressure on rare earths and warns of strategic leverage
Woodside and East Timor target LNG production from Sunrise by 2032
BP partially restarts Olympic Pipeline but leaves 60% of capacity offline
Restarting Olympic Pipeline’s 16-inch line does not restore full supply to Oregon and Seattle-Tacoma airport, both still exposed to logistical risks and regional price tensions.
India’s Russian oil imports to drop sharply from December
Faced with tightened sanctions from the United States and European Union, Indian refiners are drastically reducing their purchases of Russian crude from December, according to industry sources.
Serbia’s Pancevo refinery faces shutdown as US sanctions cut crude supply
Serbia’s only refinery, operated by NIS, may be forced to halt production this week, weakened by US sanctions targeting its Russian shareholders.
Cameroon: Glencore records a 31% drop in oil volumes
Glencore's attributable production in Cameroon dropped by 31% over nine months, adding pressure on public revenues as Yaoundé revises its oil and budget forecasts amid field maturity and targeted investment shifts.
Contrarian strategies outperform hedge fund tracking on Brent market
The profitability of speculative positioning strategies on Brent is declining, while contrarian approaches targeting extreme sentiment levels are proving more effective, marking a significant regime shift in oil trading.
ConocoPhillips, Repsol and Santos revive Alaskan oil with Nuna and Pikka
Alaska is set to record its highest oil production increase in 40 years, driven by two key projects that extend the operational life of the TAPS pipeline and reinforce the United States' strategic presence in the Arctic.
TotalEnergies strengthens position in Nigeria with 90% stake in OPL257
TotalEnergies increases its stake to 90% in Nigeria’s offshore block OPL257 following an asset exchange deal with Conoil Producing Limited.
TotalEnergies and Chevron compete for 40% stake in Mopane oil field in Namibia
TotalEnergies and Chevron are seeking to acquire a 40% stake in the Mopane oil field in Namibia, owned by Galp, as part of a strategy to secure new resources in a high-potential offshore basin.
Rosneft sells 11% of KPC to ease sanctions pressure
The reduction of Rosneft’s stake in Kurdistan Pipeline Company shifts control of the main Kurdish oil pipeline and recalibrates the balance between US sanctions, export financing and regional crude governance.
Lukoil puts pressure on Sofia to finalise refinery divestment
Russian group Lukoil seeks to sell its assets in Bulgaria after the state placed its refinery under special administration, amid heightened US sanctions against the Russian oil industry.
Washington launches new sale of 80 million offshore oil acres
US authorities will hold a large offshore oil block sale in the Gulf of America in March, covering nearly 80 million acres under favourable fiscal terms.
Sinopec to invest $437 million in hydrotreatment unit in Algeria
Sonatrach awarded Chinese company Sinopec a contract to build a new hydrotreatment unit in Arzew, aimed at significantly increasing the country's gasoline production.
Chevron in advanced talks to acquire Lukoil’s international assets
The American major could take over part of Lukoil’s non-Russian portfolio, under strict oversight from the U.S. administration, following the collapse of a deal with Swiss trader Gunvor.
Lukoil shuts down 430 petrol stations in Finland under US sanctions pressure
Finnish fuel distributor Teboil, owned by Russian group Lukoil, will gradually cease operations as fuel stocks run out, following economic sanctions imposed by the United States.
Exxon to close its ethylene plant in Scotland amid market pressures
ExxonMobil will shut down its Fife chemical site in February 2026, citing high costs, weak demand and a UK regulatory environment unfavourable to industrial investment.
Orlen acquires 7.6% of Ekofisk project as DNO reallocates assets
Polish state-owned group Orlen strengthens its North Sea presence by acquiring DNO’s stake in Ekofisk, while the Norwegian company shifts focus to fast-return projects.
Syria signs strategic oil deal with ConocoPhillips and Nova Terra Energy
The Syrian Petroleum Company has signed a memorandum of understanding with ConocoPhillips and Nova Terra Energy to develop gas fields and boost exploration amid ongoing energy shortages.
Fincraft offers revised C$1.75 per share bid to acquire Tethys Petroleum
Fincraft Group LLP, a major shareholder of Tethys Petroleum, submitted a non-binding proposal to acquire all remaining shares, offering a 106% premium over the September trading price.
China increases crude oil stockpiles in October as prices stabilise
As global oil prices slowed, China raised its crude stockpiles in October, taking advantage of a growing gap between imports, domestic production and refinery processing.
Kuwait Petroleum Corporation secures record KWD1.5bn loan to support expansion strategy
Kuwait Petroleum Corporation has signed a syndicated financing agreement worth KWD1.5bn ($4.89bn), marking the largest ever local-currency deal arranged by Kuwaiti banks.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

START - 99$/year

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.