Saudi Aramco cuts crude price to 5-year low

Investing.com -- Saudi Arabia has cut the price of its main crude grade to Asia to the lowest level in five years, as global oil markets continue to show signs of surplus.

State producer Saudi Aramco will reduce the price of its flagship Arab Light crude grade to a 60 cents premium to the regional benchmark for January, according to a price list reported on by Bloomberg on Thursday. This marks the lowest level since January 2021.

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The cut was slightly larger than market expectations, exceeding the anticipated 30 cents a barrel reduction based on a survey of refiners and traders.

This pricing decision comes just days after the Organization of the Petroleum Exporting Countries and its allies confirmed they would pause planned production increases during the first quarter of next year.

Oil prices have declined approximately 16% in 2025, primarily due to increasing supply from the Americas combined with production increases from the OPEC+ group itself, which have outpaced modest demand growth.

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