Saudi Arabia Cuts Crude Price to Asian Customers Amid Oversupply Concerns
Saudi Arabia, the world's biggest oil exporter, has decided to reduce the price of its flagship Arab Light crude for Asian customers. This move comes despite the country's decision to extend voluntary output cuts in response to concerns about an oversupplied market.
Saudi Aramco, the state-owned oil giant, announced that it would lower the January official selling price for Arab Light to Asia by $0.50. The new price stands at $3.50 per barrel over the Oman/Dubai average. This pricing decision is widely seen as an indicator of the kingdom's outlook on demand.
In addition to the price reduction in Asia, Saudi Aramco also adjusted the January official selling prices for Arab Light in other regions. The price for northwest Europe was cut by $2 to $2.90 per barrel compared to ICE Brent, while the North American price was lowered by $0.30 to $7.15 per barrel versus ASCI.
It is worth noting that Saudi Arabia recently announced its intention to extend voluntary production cuts of 1 million barrels of oil per day. This decision was made as part of a deal reached between the Organization of the Petroleum Exporting Countries (OPEC) and its allies to implement additional cuts in the coming year.
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