Gulf oil exporters slash official selling prices amid oversupply, with Saudi Arabia’s discount the steepest in decades for Asian markets.
Saudi Arabia reduced its official selling price for crude to Asian buyers by up to $11 per barrel, the largest cut in decades, as Gulf producers compete for demand. The move follows months of unsold inventory in the region, pressuring exporters to offer deeper discounts to clear stockpiles.
The price cut undercuts prior expectations and reflects weaker global demand, particularly in Asia. Other Gulf exporters have implemented even steeper reductions to attract buyers, signaling a shift in market leverage toward importers.
The decision highlights persistent oversupply concerns, with barrels remaining unsold for over three months in some cases. Analysts note the cuts may not immediately boost sales but could intensify price competition among producers.