Saudi Arabia Cuts Crude Prices Amid OPEC+ Output Increase

Saudi Arabia, as part of the OPEC+ alliance, is cutting prices on all crude grades for Asian buyers next month while also lowering most prices for Europe and the US, following OPEC+'s decision to continue increasing oil production. The flagship Arab Light crude price to Asia is being reduced by $1 a barrel, a bigger cut than expected by refiners and traders, signaling a shift toward regaining market share rather than defending prices. Eight key OPEC+ members, including Saudi Arabia and Russia, agreed to boost oil production by 137,000 barrels per day starting next month, adding to previous output hikes totaling 2.2 million bpd. This strategy aims to reclaim market share even at the risk of softer prices, with analysts noting the move could push prices below $60 a barrel. Oil prices have already fallen about 12 percent this year due to increased non-OPEC+ supply and tariffs dampening demand, with expectations of further surplus and lower seasonal consumption in the coming months. Despite these trends, geopolitical risks like Russia's war in Ukraine and US sanctions on Russian oil exports continue to support prices to some extent.