Saudi Arabia has sharply reduced the prices of its crude oil for Asian buyers in December, reflecting a well-supplied market and an increase in production from OPEC+ members, according to a Reuters report.
State oil company Saudi Aramco set its December official selling price (OSP) for its flagship Arab Light crude at $1 per barrel above the Oman/Dubai average, down from $2.00 in November. The move marks the first price reduction since October, after prices were left unchanged last month.
Prices for other grades were also lowered. Arab Medium and Arab Heavy fell by $1.40 each to $0.05 and $0.10 per barrel above the benchmark respectively, while Arab Extra Light dropped by $1.20 to $1.30 per barrel.
The cuts came shortly after the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) agreed on Sunday (2 November 2025) to a modest increase in output for December, followed by a pause in production hikes during the first quarter of 2026.
The producers’ alliance has raised output targets by about 2.9 million barrels per day since April, the equivalent to around 2.7 per cent of global supply, but has recently slowed the pace amid forecasts of a potential supply glut.
Saudi Aramco typically determines its monthly crude pricing based on feedback from customers and changes in regional refining margins, which are influenced by shifts in product prices and market yields.
While the OPEC+ output increase is relatively small, it underscores the group’s effort to balance market share ambitions with the risk of oversupply as inventories build and global demand growth shows signs of slowing.
Follow us on
