Saudi Arabia has lowered the price of its main crude grade for Asian buyers to the lowest level in five years, reflecting growing signs of oversupply in the global oil market.
Saudi Aramco, the state-owned oil producer, announced it will cut the January price of its flagship Arab Light crude to a premium of just 60 cents over the regional benchmark, according to a price list reported by Bloomberg on Thursday. This is the cheapest level since January 2021.
The reduction was larger than analysts expected. Refiners and traders had predicted a cut of about 30 cents per barrel, making the actual move notably more aggressive.
The decision follows an announcement from the Organization of the Petroleum Exporting Countries and its allies (OPEC+) confirming that planned production increases will be paused during the first quarter of next year.
Oil prices have fallen roughly 16% in 2025. The decline has been driven by rising output from producers in the Americas, combined with additional supply from OPEC+ members that has exceeded relatively modest growth in global demand.
