Saudis cut key oil price for Asian buyers in sign of surplus
Saudi Arabia cut the price of its main oil grade for buyers in Asia to the lowest in years, a further sign that global supplies are running ahead of demand.
State oil producer Saudi Aramco will reduce the price of its Arab Light grade by 30 cents a barrel to parity with the regional benchmark for March, according to a price list seen by Bloomberg. That brings pricing for the kingdom's most plentiful crude blend to the lowest level since late 2020.
Still, Aramco's cut was not as deep as buyers expected, coming in smaller than even the most modest estimate of a reduction in a survey of refiners and traders. That offers a sign that the kingdom has faith in demand for its barrels and Aramco's Chief Executive Officer Amin Nasser has previously said that fears of a glut are overblown.
Saudi Arabia's monthly crude pricing is keenly watched by traders across the globe as it sets the tone for other sellers in the world's top producing regions. Asia is the biggest market for Middle Eastern crude, with the prices set for refiners determining the profitability of processing and influencing the cost of fuels like gasoline and diesel the world over.
Aramco also cut pricing for its Arab Medium and Arab Heavy crude grades to Asia to the lowest levels since mid 2020, while it increased prices for the Extra Light and Super Light blends.
State oil producer Saudi Aramco will reduce the price of its Arab Light grade by 30 cents a barrel to parity with the regional benchmark for March, according to a price list seen by Bloomberg. That brings pricing for the kingdom's most plentiful crude blend to the lowest level since late 2020.
Still, Aramco's cut was not as deep as buyers expected, coming in smaller than even the most modest estimate of a reduction in a survey of refiners and traders. That offers a sign that the kingdom has faith in demand for its barrels and Aramco's Chief Executive Officer Amin Nasser has previously said that fears of a glut are overblown.
Saudi Arabia's monthly crude pricing is keenly watched by traders across the globe as it sets the tone for other sellers in the world's top producing regions. Asia is the biggest market for Middle Eastern crude, with the prices set for refiners determining the profitability of processing and influencing the cost of fuels like gasoline and diesel the world over.
Aramco also cut pricing for its Arab Medium and Arab Heavy crude grades to Asia to the lowest levels since mid 2020, while it increased prices for the Extra Light and Super Light blends.
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