Top oil exporter Saudi Arabia has cut the price for the flagship Arab light crude it sells to Asia in December by 50 cents to $1.70 a barrel above the Oman/Dubai average, Saudi Aramco said in a statement on Tuesday.
The decrease is broadly in line with expectations, as sources at Asian refineries had said they expected the price to fall by 30 cents to 50 cents.
“The price (cut) definitely indicates a bearish outlook,” an Asia-based buyer said on Wednesday, adding that the reduction was at the lower-end of expectations.
Another buyer said the price cuts also indicate pressure faced by Saudi Aramco in placing its barrels in the market.
Middle East oil markets are under pressure as Asia is well-supplied and demand from top importer China remains weak.
On Sunday, the Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+, said they would push back a production hike by a month from December as weak demand and rising non-OPEC supply depress markets.
Saudi Arabia may cut December oil prices for Asia, sources say
Aramco sets its crude prices based on recommendations from customers and after calculating the change in the value of its oil over the past month, based on yields and product prices.
Aramco also set the Arab Light OSP to Northwest Europe at minus $0.15 versus ICE Brent, an increase of 30 cents per barrel from November, according to a pricing document.
It hiked its OSPs to both Northwest Europe and the Mediterranean by 30 cents per barrel across the board.
For buyers in the United States, the Arab Light OSP was cut by 10 cents to plus $3.80 versus ASCI.
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