Saudi Arabia cut the January official selling price (OSP) for its flagship Arab Light crude for Asian buyers to a 10-month low, on concerns over faltering demand and a potential increase in Russian competition. The OSP for January-loading Arab Light to Asia was trimmed by $2.20 a barrel from December to $3.25 a barrel over Oman/Dubai quotes. The new OSP is just above the previous low of $2.80 per barrel, set for March 2022. Although the market remains cautious on lifting Russian crude as the price cap is just set, it is unlikely that more cargoes will flow to Asia and compete with the Middle Eastern crude.
- Saudi Arabia sets Jan Arab Light prices to Asia at 10-mth low