Saudi Aramco, the world’s largest oil company, lowered the price of its crude oil for Asian buyers in May 2025, marking the lowest price level in four months. The move, confirmed in an official pricing document released Sunday, reflects shifting global market dynamics and rising oil supply.
The official selling price (OSP) for Aramco’s flagship Arab Light crude was cut by $2.30, bringing it to just $1.20 per barrel above the average prices of Oman and Dubai crudes—key benchmarks for Asian buyers. This marks the second straight month that Aramco has reduced its oil prices for Asia.
The price adjustments follow an unexpected decision by eight OPEC+ countries last week to begin phasing out oil output cuts. The group agreed to increase production by 411,000 barrels per day in May, a move that contributed to declining global oil prices.
Prior to Aramco’s announcement, a Reuters survey had anticipated a smaller reduction of $1.80 to $2.00 per barrel for Arab Light crude. However, steeper price declines in March prompted a more aggressive pricing move.
Saudi Aramco’s price decisions are particularly significant as they help set the tone for nearly 9 million barrels per day of crude oil exports to Asia. They also act as a benchmark for other regional producers, including Iran, Kuwait, and Iraq.
In terms of global pricing, the spot premium for Dubai crude—the regional price marker—averaged just $1.38 per barrel in March, down sharply from $3.33 in February. This drop was influenced by increased Russian oil exports to Asia, adding more pressure on prices.
For North American markets, Aramco set the May price of Arab Light at $3.60 per barrel above the Argus Sour Crude Index, maintaining a higher premium for Western buyers.
This price cut underscores Saudi Arabia’s strategic response to growing supply and weakening demand signals, particularly in the Asia-Pacific region, which remains its largest export market.
