Saudi Arabia lowers Arab Light crude oil price for Asia in ‎February to 15-month low

On Thursday, Saudi Aramco announced a reduction in the official selling price of Arab Light crude in February for buyers from Asia to a premium of $1.8 a barrel over the average Oman/Dubai crude, which is the lowest since November 2021.

According to Reuters, this price is $1.45 a barrel less than the January official selling price and is in line with market expectations. It comes amid global pressures hurting oil prices, which are expected to make small gains in 2023, while rising COVID-19 infections in China threaten demand growth and the impact of supply shortages caused by sanctions on Russia may be offset.

Four respondents to a poll expected this week to reduce the price by $1.50 per barrel

The reduction also comes at a time when Russia is shifting its oil from Europe to Asia, in light of the price ceiling imposed by the G7 countries and restricting the ability of the Russian oil trade to access Western financing, shipping and insurance services.

Russia became the largest supplier of crude to both China and India in November, as the two Asian countries benefited from deep discounts, while Western countries avoided dealing with Moscow.

For other regions, the company set the selling price of Arab Light crude for Northwest Europe at $1.50 a barrel below the February Intercontinental Exchange Brent crude price, down $1.40 a barrel from its January price.

Meanwhile, the US official selling price (OSP) was unchanged from last month at $6.35 against the Argus benchmark for February’s sour crude.