Middle Eastern crude benchmark spot premiums for Oman, Dubai, and Murban saw small gains on Friday, reflecting positive trends for the week. In a significant move, Saudi Arabia, recognized as the world’s largest oil exporter, has lowered crude oil prices for Asian buyers in April for the first time in three months.
This adjustment aligns with market predictions and follows OPEC+’s agreement to gradually increase supply in April. Saudi Aramco, the state oil company, announced a decrease in the April official selling price (OSP) for its flagship Arab Light crude by 40 cents, setting it at $3.50 per barrel above the average spot prices for Oman and Dubai.
The company has also adjusted prices for additional grades of crude oil sold to Asian markets. In Singapore, the cash price for Dubai crude saw a rise in its premium to swaps, which increased by 20 cents to reach $1.37 per barrel.
Recently, PetroChina agreed to deliver two May-loading cargoes of Upper Zakum crude to Vitol as part of trading arrangements. Furthermore, the Abu Dhabi National Oil Company (ADNOC) successfully acquired two partials through the S&P Global Platts pricing methodology for Dubai crude oil, as reported by traders.
Recent data revealed that China’s crude oil imports have decreased by 5% in the first two months of 2025 compared to the previous year. This decline is attributed in part to tougher U.S. sanctions on vessels transporting oil from Russia and Iran, along with a port ban in China that has slowed imports into this major market.
In other noteworthy developments, Shell has initiated production at Phase 4 of its Sabah deepwater oil project within Malaysian and Bruneian waters. Additionally, Kazakhstan’s CPC Blend exports to Asia are anticipated to remain high in March and April following a spike that marked the highest levels seen in over a year.
Lastly, Indian state refiner Bharat Petroleum Corp (BPCL) is poised to issue a four-month tender next week to procure U.S. West Texas Intermediate (WTI) crude, pursuing more cost-effective oil options from the leading global producer.