Saudi Aramco Lowers Arab Light Crude Prices to Asia Again as Demand Softens

Saudi Aramco has lowered its February official selling price for Arab Light crude to Asia for a third consecutive month, signaling continued pressure on regional demand.

(Reuters) — Saudi Arabia lowered the official selling price of February Arab Light crude to Asia for the third consecutive month, Saudi Aramco said in a statement on Jan. 5.

The February OSP for Arab Light crude was set at $0.30 a barrel above the Oman/Dubai average, down from $0.60 a barrel in January.

Meanwhile, OPEC+ kept oil output unchanged on Sunday after a quick meeting that avoided discussion of the political crises affecting several of the producer group's members. Over the weekend, the United States attacked OPEC member Venezuela and captured its president, Nicolas Maduro.

U.S. President Donald Trump had imposed a blockade of all sanctioned oil tankers ahead of Maduro's capture and on Sunday said an oil embargo remained in full force.

Aramco's Mediterranean OSP for Arab Light was set at a $0.55 discount to ICE Brent, widening from a $0.15 discount the prior month. The company's Arab Light OSP for Northwest Europe fell 40 cents, to a discount of $0.35 versus ICE Brent, and its price for North American customers fell 30 cents, to a $2.20 premium to ASCI.

The February OSP for heavy oil to Asia also declined by $0.30 a barrel to a $2.20 discount to the Oman/Dubai average. The heavy oil OSPs for North American, Northwest European and Mediterranean customers all declined by 40 cents.