Saudi Price Cut Boosts Asian Demand for Saudi Crude

Saudi Arabia’s latest reduction in its flagship Arab Light official selling price has prompted a notable increase in demand from Asian refiners outside China, according to reports citing industry sources. The kingdom cut the February premium for Arab Light to $0.30 per barrel above the Oman/Dubai benchmark, down from $0.60 for January and marking the smallest premium in more than five months. The move appears aimed at defending market share in Asia amid softer refining margins and heightened competition from alternative suppliers, with regional buyers reportedly booking an additional 9 million barrels for next month’s loadings, a development that could influence short-term pricing dynamics for both Oil – Brent Crude and Oil – US Crude.

Over the past month, performance across the major crude benchmarks has been mixed: Brent has posted a modest 0.58% gain, while WTI has slipped by about 0.25%, reflecting a balance between supply-side moves from key producers and ongoing concerns about global demand growth. From a short-term technical perspective, both Brent and WTI currently register a Hold signal and a Hold signal, respectively, indicating a lack of strong directional conviction despite Saudi Arabia’s price adjustments and the uptick in Asian offtake. Investors can explore more updates, prices, and analysis across global markets at Commodities.