The world’s top oil exporter, Saudi Arabia, may cut price premiums on all crude grades it sells to Asian nations to lowest in a year in February, despite escalating tensions in the Red Sea.
According to a report by Reuters, citing knowledgeable sources, the official selling price for Saudi Arabia’s flagship Arab Light crude over Oman/Dubai crude prices could be reduced by about $1.70 per barrel in February.
Prices for medium sour crudes of similar quality to Arab Light are at a $0.60 per barrel premium compared to Dubai prices.
While OPEC+ members agreed to slash production by a combined 2.2 million barrels per day in the first quarter, investors had doubts whether producers would comply with the agreement.
“Saudi Arabia needs to lower prices to defend its market share as the prices for other oil are significantly lower,” one of the sources was quoted as saying by the same media.
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