Saudi Arabia has reduced prices for all crudes destined to Asia, its biggest market, after OPEC+’s decision to keep slow production increases sent oil futures surging, Report informs referring to Bloomberg.
State producer Saudi Aramco lowered its key Arab Light grade to Far East customers in November by 40 cents to $1.30 a barrel above the average of Oman and Dubai crudes, the smallest premium since March, according to documents seen by Bloomberg.
The world’s largest oil exporter also cut prices for nearly all grades headed for the US, the Mediterranean, and Northwest Europe.
The decision comes after the OPEC+ cartel - led by the Saudis and Russia - opted to continue with a gradual approach to production increases, even as a gas shortage in Europe and Asia boosts demand for crude for power generation. The group’s move triggered a surge in crude prices, with those in the US climbing to a seven-year high.