By Julianne Geiger – Mar 07, 2025, 9:00 AM CST
- Saudi Aramco reduced its official selling prices (OSPs) for crude oil to Asian buyers, with Arab Light down by 40 cents per barrel.
- This price adjustment comes after OPEC+ announced a production increase and amidst shifting global trade flows due to sanctions on Russian oil.
- While Asia saw price cuts, prices for North America and Europe remained relatively stable, indicating a targeted market adjustment.
Saudi Arabia just dialed back its crude prices for Asia, according to Aramco’s just-published rate sheet. The company has trimmed official selling prices (OSPs) for the first time in three months, with Aramco’s April price sheet now showing Arab Light at $3.50 per barrel over Oman/Dubai, a 40-cent cut. That’s after last month’s price spike, driven by U.S. sanctions squeezing Russian supply. But with OPEC+ greenlighting a 138,000 bpd production increase for April—the cartel’s first hike since 2022—Riyadh is making sure its crude stays competitive.
The cuts aren’t dramatic, but they do signal a shift. Arab Extra Light for Asia took the biggest hit, down 60 cents to $3.30 over Oman/Dubai. Other grades saw 30- to 40-cent reductions. Not exactly a fire sale, but enough to keep buyers from looking too hard at discounted Russian and Iranian barrels now flowing back into China.
Meanwhile, North America and Europe? Barely a scratch. Aramco kept its U.S.-bound crude prices unchanged, with Arab Extra Light holding at $6.05 over ASCI. In Northwest Europe and the Mediterranean, OSPs were shaved by a modest 20 to 30 cents across grades. Translation: Saudi barrels are still priced at a premium, but the kingdom knows better than to push its luck when global demand growth isn’t exactly on fire.
What’s next? The oil market is watching whether OPEC+ will hold its nerve or blink on supply decisions. Russia has hinted at an output reversal, and China’s buying patterns are shifting as Western sanctions keep reshuffling trade flows. For now, Aramco’s price tweaks show it’s playing the long game—keeping Asian refiners hooked without torching margins.
If oil bulls were hoping for tighter supplies and firmer prices, they might have to wait a little longer.
By Julianne Geiger for Oilprice.com
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