Saudi Arabia May Have Set the Price of Its Oil Too High

Saudi Arabia May Have Set the Price of Its Oil Too High

Asian buyers could reduce intake of term supplies from Saudi Arabia in January and look to buy more spot crude cargoes after the world’s top crude exporter reduced the price of its oil to Asia by less than expected, traders and refiners told Bloomberg on Wednesday. On Tuesday, Saudi Arabia cut the price of its …

The post Saudi Arabia May Have Set the Price of Its Oil Too High appeared first on Gulf Insider.Asian buyers could reduce intake of term supplies from Saudi Arabia in January and look to buy more spot crude cargoes after the world’s top crude exporter reduced the price of its oil to Asia by less than expected, traders and refiners told Bloomberg on Wednesday.

On Tuesday, Saudi Arabia cut the price of its flagship crude, Arab Light, loading in January for Asia by $0.50 per barrel over the Oman/Dubai average, the benchmark off which Middle Eastern crude exports to Asia are priced.

While the cut was widely expected by the market and was the first reduction in the official selling price (OSP) of Arab Light for Asia in seven months, it was half of what market participants were anticipating.

A Bloomberg survey of analysts showed that Saudi Arabia