The Saudi oil price drop is now reshaping global crude flows as exports to China prepare to rise sharply in May. Saudi Aramco, the Kingdom’s state oil company, will ship 48 million barrels of crude to Chinese buyers. This number shows a clear jump from April’s 35.5 million barrels.
This is the first monthly increase in 2025, showing how much the recent price change has affected demand. Saudi Arabia reduced the May official selling price (OSP) of its Arab Light crude. The premium now stands at $1.20 per barrel over the Oman and Dubai benchmark. That is $2.30 less than April’s rate and the lowest in four months.
Because of the Saudi oil price drop, major Chinese refiners quickly raised their orders. Sinopec, CNOOC, and Shenghong Petrochemical will all receive more barrels in May. These companies acted fast to take advantage of the cheaper Saudi crude.
Saudi Arabia made this price cut after OPEC+ decided to increase oil production. The group announced it would add 411,000 barrels per day to the market in May. That amount is triple what many experts expected before the announcement.
As a result of this new supply, Saudi Arabia adjusted its strategy. It lowered prices to stay competitive and protect its market share in Asia. With China being a top oil buyer, Saudi Arabia is focusing heavily on maintaining its presence there.
Even though Russia remains China’s largest oil supplier, Saudi Arabia follows closely. The Saudi oil price drop has allowed the Kingdom to stay attractive to buyers looking for good deals.
This move could lead to further price changes in the global oil market. Analysts now expect refiners across Asia to look closely at Saudi offers in the coming months.
