Saudi Aramco slashed the official selling price (OSP) for
February-loading Arab Light to Asia by $2 a barrel from January to $1.50 a
barrel over Oman/Dubai quotes.
The price cut is in line with market expectations, as refiners called for competitive prices from Saudi Arabia comparing to crude oil supplied from other Middle Eastern producers and the arbitrage cargoes from the Atlantic Basin.
The Asian physical oil market softened over the past month,
reflecting expectations of less supply tightness in the near term and weaker
demand as some Asian refineries are scheduled to shut down for maintenance in
the spring season of the northern hemisphere.