CommoditiesMarkets

Oil Prices Dip as Saudi Arabia Slashes Selling Price

Oil prices were on a downward trend Monday morning following Saudi Arabia’s decision to reduce the prices it charges its customers.

Saudi Aramco, the producer for the Middle Eastern energy giant, has decreased the price of its flagship Arab Light to Asia by $2 per barrel, setting it at $1.50 a barrel above the benchmark.

This reduction is larger than what many industry insiders anticipated and represents the most significant price cut in 13 months. Consequently, the February official selling price (OSP) of Saudi Arabia’s Arab Light crude to Asia has dropped to its lowest point in 27 months.

In addition, Aramco has reduced all prices for February delivery to Northwest Europe, the Mediterranean, and North America.

This move suggests that worries about a slowing economy negatively impacting oil demand are outweighing concerns about potential supply disruptions due to geopolitical tensions in the Red Sea.

This development has caused Brent crude, the oil benchmark, to fall by 1.2% at the beginning of the week, bringing it to $77.80 per barrel.

Lawrence Baraza

Lawrence Baraza is a dynamic journalist currently overseeing content at Metropol TV Digital. With a keen focus on business news and analytics, Lawrence guides the platform in delivering insightful, data-driven content that empowers its audience to make informed decisions. Lawrence’s commitment to quality and his ability to anticipate market trends make him a key figure in the digital media landscape. His work continues to shape the way business news is consumed, making a significant impact in the field.

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