Saudi Arabia has announced another reduction in crude oil prices for Asian buyers, marking the fourth consecutive monthly cut and pushing prices to their lowest levels since 2020. The move signals continued pressure in global oil markets, where supply concerns have outweighed demand growth, despite recent geopolitical tensions.
According to a Bloomberg report, state-owned oil giant Saudi Aramco has lowered the official selling price of its crude exports to Asia, offering relief to refiners across the region. The repeated price cuts underline Saudi Arabia’s efforts to remain competitive amid discounted Russian crude and a softer global demand outlook.
Arab Light Prices Reduced Again
Saudi Aramco reduced the price of its flagship Arab Light crude for March deliveries by 30 cents per barrel, bringing it closer to the regional benchmark. This adjustment has pushed the price of Saudi Arabia’s most widely supplied crude blend to its lowest level in nearly five years.
The latest decision reflects market conditions in which supply continues to exceed demand, especially in Asia—the world’s largest crude oil import region. Aramco has also lowered prices for Arab Medium and Arab Heavy grades to Asia, both now at their weakest levels since mid-2020. However, prices for Extra Light and Super Light crude blends have been raised.
Saudi Confidence in Demand Remains Intact
Despite the price reductions, the cuts were smaller than expected. Market surveys of refiners and traders had projected deeper discounts, suggesting that Saudi Arabia remains confident about underlying oil demand. Saudi Aramco Chief Executive Officer Amin Nasser has previously stated that fears of prolonged oversupply in the global oil market are overstated.
Meanwhile, global benchmark prices showed modest gains. Brent crude was trading at around $68.05 per barrel, up 0.74 per cent, while US West Texas Intermediate crude stood near $63.55 per barrel, up 0.41 per cent.
Why Saudi Pricing Matters Globally
Saudi Arabia’s monthly crude pricing decisions are closely monitored worldwide, as they often set the tone for other major oil exporters, particularly in the Middle East. Asia’s dependence on Middle Eastern crude means these price adjustments directly impact refinery margins and influence fuel prices such as petrol and diesel across global markets.
With continued price pressure and growing competition among exporters, Saudi Arabia’s pricing strategy will remain a key indicator of broader trends in the global oil market.
