Saudi Arabia Eyes Sharp Cut to December Asian Crude Prices Amid Supply Surge

Saudi Arabia is preparing to cut the price of its crude oil for Asian buyers in December, as global supply strengthens and demand outlook remains uncertain. The move could push prices to their lowest level in months and reflects the shifting balance in the global energy market.

Industry sources say Saudi Arabia may reduce the official selling price for its flagship Arab Light crude to a premium of around 70 cents to $1 per barrel over the Oman/Dubai benchmark. Last month, the premium was more than $2 per barrel. The expected decrease follows a steady rise in oil output across the Middle East.

The Organization of the Petroleum Exporting Countries and its allies (OPEC+) have increased supply by more than 2.7 million barrels per day since April. As production rises, competition among oil exporters is picking up, especially in Asia — the world’s largest energy-consuming region.

Despite the price cut expectations, analysts say demand from major Asian buyers remains stable. China and India continue to buy large quantities of Middle Eastern crude, particularly as global tensions reshape supply chains and reduce flows from other markets.

Even with lower prices, supply could tighten again soon. Some Saudi refining units are finishing maintenance and will restart operations, which means fewer barrels available for export. This may support prices going forward.

Saudi Arabia’s monthly price decision is closely watched by global markets. The country supplies roughly 9 million barrels per day to Asia and often sets the tone for other Middle Eastern oil producers.

Energy traders say the December pricing signals that Riyadh aims to stay competitive as global supply rises and demand recovery remains uneven. The direction of prices in early 2026 will depend on winter consumption, economic trends in Asia, and future OPEC+ decisions on output levels.