Two major state-owned oil companies from the UAE and Saudi Arabia have announced a reduction in their benchmark crude oil prices. Saudi Aramco, recognized as the world’s leading oil exporter, has lowered its crude oil prices for Asian buyers in April for the first time in three months. This decision aligns with market expectations following Opec+’s agreement to gradually increase supply in April.

Specifically, Aramco reduced the official selling price (OSP) for its flagship Arab Light crude by 40 cents, setting it at $3.50 a barrel above the average prices of Oman and Dubai. A pricing document from the producer confirmed this change. In March, Arab Light’s OSP had reached its highest level in over a year at $3.90 above the Oman and Dubai average, driven by stricter US sanctions on Russian oil that disrupted global trade, leading to surges in oil prices and freight rates.

Additionally, Aramco has lowered prices for other grades it sells to Asia, in line with a forecast of cuts ranging from 20 to 65 cents as indicated by a Reuters poll. Meanwhile, the Abu Dhabi National Oil Company (Adnoc) set the April OSP of its benchmark Murban crude at $77.62 a barrel, down from the March price of $80.22. Opec+, which is responsible for about half of the world’s oil supply, had decided last week to proceed with a planned increase in oil output of 138,000 barrels per day, marking the group’s first output increase since 2022.

In a related development, Russian and Iranian oil supplies to China, the world’s top importer, have begun to recover in March, as non-sanctioned tankers are attracted by favorable payoffs, alleviating some supply concerns in the market.