Saudi Arabia cuts oil prices for all consumers
Economy
Riyadh took such a decision due to lower demand for this type of fuel. The premium to Arab Light grade for Asia - Saudi Aramco's main market - will be reduced to $1.5 per barrel.
The Saudi government has decided to cut the cost of oil for consumers in all regions, including Asia, for deliveries in February amid continued weak demand in the global market, Bloomberg reported.
The cost of Saudi oil is determined through a premium to the benchmark, the reference grade for a particular market. Thus, the premium to Arab Light oil grade for deliveries to Riyadh's main market - Asia - will be reduced by $2 and will amount to $1.5 per barrel. At the same time, refiners and traders polled by Bloomberg expected a decrease of $1.25.
The kingdom's national oil company Saudi Aramco is also cutting prices for February deliveries to Northwest Europe, the Mediterranean and North America.
For the record, global oil prices fell in 2023 for the first time since 2020. The market has yet to react with a significant price rise to the escalation in the Middle East after the radical Islamist movement Hamas attacked Israel, Bloomberg notes. Attacks by the Iran-affiliated Houthi militia in Yemen on merchant ships in the Red Sea also have not yet led to supply disruptions, the agency adds.
Oil consumption typically falls in February and March. Refineries use this period for maintenance.
The cost of Saudi oil is determined through a premium to the benchmark, the reference grade for a particular market. Thus, the premium to Arab Light oil grade for deliveries to Riyadh's main market - Asia - will be reduced by $2 and will amount to $1.5 per barrel. At the same time, refiners and traders polled by Bloomberg expected a decrease of $1.25.
The kingdom's national oil company Saudi Aramco is also cutting prices for February deliveries to Northwest Europe, the Mediterranean and North America.
For the record, global oil prices fell in 2023 for the first time since 2020. The market has yet to react with a significant price rise to the escalation in the Middle East after the radical Islamist movement Hamas attacked Israel, Bloomberg notes. Attacks by the Iran-affiliated Houthi militia in Yemen on merchant ships in the Red Sea also have not yet led to supply disruptions, the agency adds.
Oil consumption typically falls in February and March. Refineries use this period for maintenance.
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