Saudi Arabia has reduced oil prices in all regions – Kommersant

Saudi Arabia has decided to cut prices for February oil supplies to buyers in all regions, including Asia, amid lower market demand. As he writes Bloombergthe state-owned company Saudi Aramco has reduced the price of oil for its key Arab Light brand for supplies to Asia by $1.5-2 per barrel.

Saudi Aramco also cut prices for February deliveries to northwestern Europe, the Mediterranean and North America. Bloomberg notes that in February and March there was a decrease in oil consumption. During this period, refineries are closed for scheduled maintenance, the agency notes.

As Bloomberg notes, the decision to reduce prices was made against the backdrop of the risk of a supply surplus due to increased supplies of American oil. Against the backdrop of a reduction in US exports by OPEC+ countries towards the end of last year got closer to setting a world record for oil production, follows from data from S&P Global Commodity Insights.

At the end of November, OPEC+ countries came to the agreement, according to which Saudi Arabia extends the voluntary reduction in oil exports by 1 million bpd, Russia increases the reduction to 500 thousand bpd, and the rest of the organization countries collectively reduce oil exports by 500 thousand bpd. The agreement is valid until March 2024.

Read more about the situation in the Kommersant article. “Is the oil market running out of candy?”.

Lusine Balasyan