Saudi Arabia Cuts January Light Crude Prices to Asia -- WSJ
By Will Horner
Saudi Arabia lowered its January selling prices for the flagship
light crude it sells to Asia despite signs that China is easing
some of the Covid-19 restrictions that have crimped its huge
appetite for crude.
Saudi Arabian Oil Co. cut the price of its benchmark Arab Light
crude sold into Asia by $2.20 a barrel, meaning sales next month
will carry a $3.25 a barrel premium over the average of the Oman
and Dubai benchmarks
The company, commonly known as Saudi Aramco, also lowered the
prices of its super light, medium and heavy varieties by $1.80,
$1.10 and $2.50 a barrel, respectively
Aramco cut prices for customers in Europe but made no changes to
its prices for sales into the U.S.
Customers in Northern Europe will pay $1.80 a barrel less for
Aramco's Arab Light crude in January than in the previous month
while customers in Southern Europe will pay $1.50 a barrel
Prices for buyers in the U.S. of all varieties were left
The changes mean buyers in both Northern and Southern Europe
will pay $0.10 a barrel less than the Brent crude benchmark. U.S.
buyers will continue to pay a $6.35 a barrel premium over the ASCI
The changes come despite expectations that oil demand in China
could get a boost in the coming months as Beijing looks to ease the
Covid-19 lockdowns that have weighed heavily on the nation's demand
for crude. Major cities have already begun relaxing some measures
though surging caseloads have cast doubt on how swiftly policies
will be relaxed.
Saudi Arabia, a leading member of the Organization of the
Petroleum Exporting Countries, is also trying to gauge the impact
on oil prices from fresh Western sanctions on Russian
oil--including a price cap--which are set to come into force
Monday. Russia has threatened to withhold oil supplies from those
nations partaking in the price cap.
Write to Will Horner at email@example.com
(END) Dow Jones Newswires
December 05, 2022 08:43 ET (13:43 GMT)
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