Saudi Arabia raises crude prices for Asia despite OPEC+ output hike

Saudi Arabia has increased the official selling price (OSP) of its flagship Arab Light crude for June loadings to Asia, signaling confidence in continued strong regional demand, even as the OPEC+ alliance prepares to ease production cuts more aggressively than expected.

The Kingdom raised the price of Arab Light by $0.20 per barrel over May levels, setting it at a premium of $1.40 per barrel above the Oman/Dubai average—the benchmark used for pricing Middle Eastern crude bound for Asia, Caliber.Az reports citing foreign media.

The move, announced around the usual fifth-of-the-month timeframe, reflects Saudi Arabia’s assessment of market fundamentals in its key export market.

The price hike comes on the heels of OPEC+’s weekend announcement to increase crude oil output by 411,000 barrels per day (bpd) in June, nearly triple the originally scheduled volume. The decision follows a similar boost for May and marks a notable pivot from the group’s earlier strategy of restraining supply to support prices.

The group, which includes Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman, cited “current healthy oil market fundamentals” as justification for the larger increase in production. These eight producers will continue making output decisions on a monthly basis, with the next meeting scheduled for June 1 to determine July production levels.

While Saudi Arabia typically does not comment on its monthly pricing decisions, market analysts suggest that improving refining margins for Middle Eastern crude—tracked closely by Riyadh—played a role in the price adjustment. According to Bloomberg, rising profits for refiners processing Saudi grades may have supported the decision to raise prices even amid rising supply.

The pricing move also sets the tone for other Gulf producers, who often follow Saudi Arabia’s lead in adjusting their own crude prices for Asian customers.

In April, Saudi Arabia slashed its crude prices for May shortly before announcing a planned 410,000 bpd production increase for that month. The decision to reverse course slightly for June suggests the Kingdom anticipates robust buying interest from Asia, even as global supply begins to loosen.

By Vafa Guliyeva