Saudi Arabia, the world's top oil exporter, has decided to maintain its March prices for Arab Light crude to Asian customers at the same level as the previous month. This decision comes as the country grapples with a more than two-year low in demand.
The state-owned oil giant Saudi Aramco, also known as Saudi Arabian Oil Co., has set the official selling price for Arab Light to Asia at $1.50 a barrel over the Oman/Dubai average. This price is often used as a gauge to determine the kingdom's perception of demand.
In addition to keeping prices stable for Arab Heavy crude to Asia for March, Aramco has made slight adjustments for Arab Extra Light and Arab Medium prices, reducing them by $0.05 and $0.20 per barrel, respectively.
While prices remain unchanged for northwest Europe and the Mediterranean regions, Saudi Arabia has lowered its prices for Arab Light and Extra Light crude to the U.S. by $0.30 and $0.20 per barrel, respectively.
This move by Saudi Arabia reflects the challenging market conditions and sluggish demand due to various factors, including the ongoing global pandemic. As the situation continues to evolve, it will be interesting to see how other oil-producing nations respond.
By Giulia Petroni