SINGAPORE: The Middle East crude market held steady on Monday with Asian refiners saying they expect big price cuts for Saudi Arabia's January crude exports.
Traders from five Asian refiners expect the official selling price (OSP) of Saudi's Arab Light to fall by $2-$3 a barrel in January, a Reuters survey showed on Monday.
The OSP for the flagship crude could hit the lowest in at least 10 years if the forecast price cuts materialise, Reuters data showed.
Saudi Arabia cut prices for crude sold to Asia in four of the past five months, but increased its OSP for December exports, while most other Middle East producers cut prices.
"December OSPs were up due to Chinaoil's bids (in trading for the previous month), hence, they will have to do a double correction for January," a trader with one of the Asian refiners said.
An oil analyst, who declined to be named, said: "It's too big a cut and might send shockwaves through the market."
Comments
Comments are closed for this article.