Saudi Arabia lowered February crude prices for Asia for the third straight month amid global oversupply fears.

For the third consecutive month, Saudi Arabia lowered the price of its Arab Light crude for Asian consumers in February, setting it $0.30 above the Oman/Dubai average, down from $0.60, in response to persistent worries about the world's oil surplus. Heavy crude discounts dropped $0.40 per barrel, while prices for all crude grades to Asia, North America, Northwest Europe, and the Mediterranean decreased. In the first quarter, OPEC+ postponed planned increases and kept its output unchanged. Due to non-OPEC output and previous OPEC+ increases, the International Energy Agency predicts a 3.8 million barrel per day global surplus in 2026. Brent and other crude benchmarks saw a 20% decline in 2025, which was their worst yearly performance since 2020. China's declining demand and geopolitical unrest, including the U.S. Sanctions against Iran and Russia, as well as actions in Venezuela, continue to have an impact on markets.