Saudi Arabia cuts May oil prices for Asian buyers ahead of OPEC+ production hike

Saudi Arabia, the world’s leading oil exporter, cut crude prices for buyers in Asia in May to a four-month low. The move was driven by the decision of OPEC+ to speed up the increase in oil output, Reuters says.

State company Saudi Aramco slashed the May official selling price for Arab Light crude by $2.3 to $1.2 per barrel, the news agency reports. According to Reuters, this marks the biggest cut in more than two years. The company also lowered prices by $2.30 a barrel for other grades that it supplies to Asia.

On Thursday, eight OPEC+ countries decided to increase oil production by 411,000 barrels per day next month. Reuters reports it is triple the expected increase and represents around 0.4% of global supply.

The news, along with escalating global trade tensions, led oil prices to fall almost 11% in the week to April 4 and hit more than three-year lows, Reuters says.