Saudi Arabia has announced a sharp reduction in its official selling price for crude oil destined for Asia in December, following the OPEC+ decision to halt output increases in early 2026. Saudi Aramco will sell its flagship “Arab Light” grade at a premium of $1.00 per barrel above the Oman/Dubai average, down from November’s level.

The decision comes after OPEC+ agreed to raise production by 137,000 barrels per day for December and pause further supply increases in Q1 2026. The move reflects a well-supplied Asian market and Saudi Arabia’s desire to maintain competitiveness and market share while positioning for higher volumes.

Asian refiners, especially in China, India, Japan, and South Korea, will benefit from the price cut, potentially stimulating increased term nominations or spot buying of Saudi crude. However, the lower premium also signals concerns about future demand and potential oversupply in the market.

Traders will closely watch demand from Asian refiners for December to see if spot flows of Saudi barrels increase. Oil prices were trading flat immediately after the news, with WTI at $59.61 and Brent at $63.53. This decision could impact the global oil market in the short term.

Read more at Yahoo Finance: Saudi Arabia Slashes December Oil Prices to Defend Market Share in Asia