Saudi Arabia may cut oil prices for Asian buyers in May – Reuters

Saudi Arabia is considering lowering oil prices for Asian customers in May, Reuters reports, referring to results of a survey conducted among oil refining companies in the region. According to the agency, the cost of the Arab Light benchmark may be reduced by $1.80-2 dollars per barrel compared to April values.

The decision to reduce the cost is caused by decreasing benchmark oil prices this month, according to traders interviewed by Reuters. The deterioration in market conditions is supported by data for Dubai crude, with the contango narrowing by $1.99 by March 27. Returning to the Asian market, Russian suppliers are putting pressure on Middle East crude.

Saudi Aramco traditionally looks at customer recommendations and price movements of oil products when calculating the cost of its crude. No official comments on May prices have been published yet, however. According to Reuters experts, the biggest decline may affect the Arab Heavy crude, for which the adjustment may reach 1.80 dollars per barrel.