Saudi Arabia, the world’s leading oil exporter, has left the official selling price of its flagship Arab Light crude to Asia unchanged, a day after OPEC+ agreed to a modest increase in oil production.

The kingdom set the November official price at $2.20 a barrel above the Oman/Dubai average, matching the level set for October, according to a document reviewed by Reuters.

The November prices for other grades – Arab Medium and Arab Heavy – fell by 30 cents to $1.45 and 10 cents a barrel, while that for Arab Extra Light remained unchanged at $2.50 a barrel, the document said.

The price announcement followed OPEC+’s decision on Sunday to increase oil output by 137,000 barrels per day (bpd) starting in November, matching the modest hike in October, as the group remains cautious amid ongoing concerns about a potential oversupply in the market.

OPEC+, comprising the Organization of the Petroleum Exporting Countries along with Russia and several smaller producers, has increased its oil output targets by more than 2.7 million bpd so far this year, an increase equivalent to roughly 2.5% of global demand.

Refining sources in Asia surveyed by Reuters had expected a slight increase in November prices given the increase in the average premium of Dubai cash prices over swaps during trading for spot cargoes last month.

However, expectations for higher official prices faded as concerns about rising Middle Eastern crude supply pushed the premium to a 22-month low last week.
Source: Reuters