Saudi Arabia decreases oil prices for October deliveries to Asia

Saudi Arabia, the leading global oil supplier, reduces the official selling price for the Arab Light crude it offers to...

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2025 September 16 . 12:04 PM

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Saudi Arabia decreases oil prices for Asia deliveries in October

Saudi Arabia decreases oil prices for October deliveries to Asia

Saudi Arabia has made a surprising move in the global oil market, reducing the price for Arab Light crude sold to Asia. The exact amount of the decrease was not specified, but it is more than the expected range of 40-70 cents, according to a Reuters survey of refining sources.

The price cut, announced just a day after OPEC+ producers agreed to raise output by 137,000 barrels per day in October, targets a higher market share. The new price for Arab Light crude is $1 lower than the September price, setting a new benchmark for the October sale.

The details of the price change were obtained from a document seen by Reuters, but the name of the leadership person who made the decision remains undisclosed. The price for the October sale of Arab Light crude to Asia is $2.20 per barrel above the Oman/Dubai average, indicating a strategic move to maintain competitiveness in the market.

In addition to Arab Light, the prices for Arab Extra Light, Arab Medium, and Arab Heavy have also fallen by 90 cents to $1. This price adjustment applies to the oil sold to Asia, reflecting Saudi Arabia's commitment to its Asian customers.

As the world's top oil exporter, Saudi Arabia's decision to lower prices could have significant implications for the global oil market. The exact impact of this move remains to be seen, but it is clear that Saudi Arabia is taking proactive steps to secure its market share in the face of increasing competition.

This unexpected price cut comes at a time when the global oil market is grappling with oversupply and uncertain demand due to the ongoing pandemic. As the situation evolves, it will be interesting to see how other oil-producing countries respond to Saudi Arabia's move and how the market reacts in the coming months.