Oil prices drop: Saudi Arabia cuts price, OPEC+ increases production
Oil prices plunged amid an unprecedented price cut by Saudi Arabia and an unexpected increase in production by OPEC+, intensifying fears of a global recession.
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On April 7, 2025, Saudi Arabia's state oil company, Saudi Aramco, announced a cut in the official selling price (OSP) for Arab Light crude for Asian buyers by $2.30 per barrel, setting it at $1.20 above the average price of Oman and Dubai crude, reports The Express Tribune.
This reduction is the most significant in over two years and followed an unexpected decision by the OPEC+ group to increase oil production by 411,000 barrels per day in May, writes Reuters.
Additionally, Saudi Aramco also reduced prices for other grades of oil sold to Asia by $2.30 per barrel.
Brent crude dropped nearly 4%, reaching $63.01 per barrel — the lowest level in four years.
Earlier in the morning, European stock markets dropped sharply: the DAX index fell by 10%, while shares of defense and industrial companies are being actively sold amid escalating trade tensions between the US and China.