Saudi Arabia, the biggest oil producer within the members of the Organization of Petroleum Exporting Countries (OPEC), mulls cutting its official selling price (OSP) for light crude oil exported to Asia in May, Reuters reported.
According to Oil Price, the kingdom considers reducing its OSP to overcome the weakened demand as supply of light oil in the region is currently abundant. The glut is a result of the increase of Russian oil and US shale in Asia, as well as the shutdown of some refineries for seasonal maintenance.
The OSP for flagship Arab light crude could be cut by $0.10 to $0.40 per barrel. Early March, the country had also announced a $0.75 reduction for Arab Extra Light in April, which was more than expected.
Saudi crude OSPs are usually released around the fifth of each month setting the trend for Iranian, Kuwaiti and Iraqi prices, and affecting more than 12mb/d of crude bound for Asia.