Saudi Arabia has raised the official selling price of its crude oil to Asia for June deliveries even as the Organization of Petroleum Exporting Countries (OPEC) and allies announced a larger-than-expected increase in collective output.
According to a pricing document seen by Bloomberg, Saudi Aramco increased the price of its flagship Arab Light crude by $0.20 per barrel for Asian refiners. This adjustment comes after the group known as OPEC+ agreed to raise production by 411,000 barrels per day in June more than triple the earlier signal.
It follows a similar production jump in May as the group accelerates the unwinding of its earlier output curbs.
The increase partly offsets a deeper-than-anticipated price cut for May and keeps the Arab Light grade near its lowest price point in 2025.
The premium for Arab Light over the benchmark is now just under $1 per barrel compared to nearly $2 earlier this year.
The price adjustment for Asia reflects recent improvements in refining margins across the region. Margins for processing Middle Eastern crude rose towards the end of April, a trend that often influences Aramco’s monthly pricing decisions.
Meanwhile, Aramco reduced prices for buyers in the United States and Europe, suggesting a targeted approach to regional demand dynamics.
The expanded OPEC+ output has raised concerns about a growing surplus in the oil market as benchmark crude prices have declined by nearly 20 percent since January as increased supply coincides with global demand uncertainty.
Delegates have said the group’s latest move was partly driven by Saudi dissatisfaction with non-compliant members such as Iraq and Kazakhstan, who have exceeded their production quotas.
Despite the increase in production and lower global prices, Saudi Arabia’s fiscal needs remain elevated.
Analysts at Bloomberg Economics estimate that the Kingdom requires oil prices above $100 per barrel to sustain Crown Prince Mohammed bin Salman’s Vision 2030 strategy which includes infrastructure investments tourism development and industrial diversification funded through the Public Investment Fund.
The Kingdom has also warned that it may introduce additional barrels into the market if OPEC+ members fail to meet their output pledges.
This stance underscores Saudi Arabia’s intent to enforce greater discipline within the coalition.
Global market attention is also focused on U.S. foreign policy as former President Donald Trump has renewed threats of sanctions against countries purchasing Iranian oil.
The tensions come amid delays in nuclear negotiations between Washington and Tehran, potentially creating new geopolitical risks for oil supply routes in the Middle East.
Saudi Arabia’s decision to raise prices in Asia while lowering them in other regions suggests a strategic effort to protect market share and capitalize on stronger refining economics in the East while managing diplomatic and competitive pressures in Western markets.
OPEC+ is scheduled to meet again in the coming weeks to review compliance levels and assess the impact of the expanded supply on global inventories and pricing benchmarks.
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