Saudi Arabia has slashed the price of its flagship crude to the lowest level since 2021, as the kingdom responds to a growing global supply surplus and OPEC+’s decision to hold production steady into early 2026.
State oil company Saudi Aramco will cut the January official selling price of Arab Light for Asia to a 60-cent premium over the regional benchmark. The move broadly in line with expectations from refiners and traders marks the lowest pricing for the grade in nearly five years.
The adjustment comes as OPEC and its allies over the weekend confirmed they will pause planned production increases in the first quarter of next year, citing softer winter demand across Asia, Europe and North America.
Global crude prices have fallen about 16 percent this year, pressured by strong supply from the Americas and additional barrels from OPEC+ members, while demand growth stays muted. The International Energy Agency expects a record surplus in 2026, and several Wall Street banks, including Goldman Sachs, forecast further weakness in futures.
Aramco also trimmed prices across its full slate of grades for Asian buyers, with Arab Medium shifting to a discount for the first time since late 2020.
Brent futures erased earlier gains and were little changed after the pricing announcement.
