Saudi Crude Exports to Asia to Remain Strong Despite Third Price Cut

Deep News01-09

Despite lowering its crude oil prices for the third consecutive month, a move influenced by signals of a market supply glut, the world's largest crude exporter, Saudi Arabia, is expected to maintain its sales to East Asia above conventional levels. According to traders familiar with the matter, Saudi Aramco plans to supply at least 9 million more barrels of crude oil for February loading to Asian refiners outside of China, compared to regular shipment volumes. These traders requested anonymity as they are not authorized to speak publicly. Aramco has not yet responded to requests for comment. Amid growing concerns over a global crude supply surplus, which drove international benchmark oil prices to their largest annual decline since 2020, Aramco cut its official selling prices for Asian markets this week. Traders stated that this adjustment has made Saudi crude pricing sufficiently competitive to rival spot crude grades from neighboring producers such as Abu Dhabi.

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