Saudi Arabia lowered the price of its main oil grade to Asia for December to the lowest level in 11 months, days after OPEC+ signaled a cautious approach by pausing its supply increases for early next year.
State producer Saudi Aramco will cut the price of its flagship Arab Light crude by $1.20 a barrel to a premium of $1 above the regional benchmark for next month, according to a list seen by Bloomberg. Aramco was expected to trim the price by $1.25, according to a survey of refiners and traders.
Saudi Arabia and some other key OPEC+ members said on Sunday they would halt their output increases during the first quarter – after making another modest hike in December – as they try balance a push for market share against signs of an emerging surplus. The hiatus comes during a period of weaker seasonal demand, and as the market closely watches how US sanctions on Russia’s two biggest oil producers impacts supply.
Crude in London has slipped almost 15 percent this year and is trading below $64 a barrel. Despite a bump immediately after the latest restrictions on Moscow’s oil industry, prices have returned to roughly the same level as they were prior to President Donald Trump’s latest curbs.
Aramco also cut prices for its medium and heavy grades by $1.40 a barrel for Asia next month, and reduced Super Light and Extra Light crudes by $1.20.
The company reduced prices for all grades for its customers in North America by 50 cents a barrel, but held them steady for those in northwest Europe and the Mediterranean.
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