About Arab Light · Saudi Arabia
Saudi Arabia is the world's largest crude oil exporter and a key OPEC+ member. Saudi Aramco, the world's most profitable company, produces approximately 9-12 million barrels per day of Arab Light, Arab Medium, and Arab Heavy crude grades.
The SAR is pegged to the USD at 3.75, so SAR oil prices track USD Brent prices directly. Saudi Aramco sets its Official Selling Price (OSP) monthly for each crude grade, which serves as the pricing reference for Asian, European, and US refiners.
Frequently Asked Questions
What is Arab Light crude? +
Arab Light is Saudi Arabia's primary export crude grade with API gravity of 32.8 and 1.77% sulphur. It is a medium sour crude and one of the world's most widely traded grades.
How does Saudi Arabia influence oil prices? +
As the world's swing producer, Saudi Arabia can increase or cut production by 2-3 mb/d quickly. OPEC+ production decisions led by Saudi Arabia are the primary policy tool for managing global oil prices.
What is the Saudi Aramco OSP? +
Saudi Aramco sets an Official Selling Price (OSP) monthly for each crude grade sold to different regions (Asia, Europe, USA). The OSP is expressed as a differential to benchmarks like Brent or Platts Oman/Dubai.
Is Saudi Arabia reducing oil production? +
Saudi Arabia has led voluntary production cuts within OPEC+ since 2023 to support oil prices. The "Saudi cut" — a 1 mb/d voluntary reduction — has been extended multiple times into 2025.
Oil Market Analysis - Saudi Arabia (March 2026)
Saudi Arabia, as the de facto leader of OPEC+, plays a pivotal role in global oil supply management. The Saudi Aramco Official Selling Price (OSP) for Arab Light crude is a key benchmark for Asian and European buyers. In March 2026, Saudi production policy is focused on balancing market share with price stability, while Vision 2030 diversification efforts continue to reduce the kingdom's economic dependence on oil revenues. Domestic fuel prices are subsidised but have been gradually reformed since 2016.