Saudi Arabia cuts Feb Arab Light crude price for Asia to 15-month low

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Top crude exporter Saudi Arabia lowered prices for the

flagship Arab light crude it sells to Asia to $1.80 a barrel

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above the Oman/Dubai average, the lowest since November 2021,

Aramco said on Thursday.

The price cut – $1.45 a barrel less than the January

official selling prices and in line with market expectations –

comes amid global pressures hitting oil prices, which are set

for small gains in 2023 as COVID-19 flare-ups in China threaten

demand growth and offset the impact of supply shortfalls caused

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by sanctions on Russia.

Four respondents surveyed by Reuters this week had forecast

a $1.50 a barrel price cut.

The cut also comes as Russia diverts its oil from Europe to

Asia, alongside a price cap introduced by the Group of Seven

(G7) nations that restricts Russian oil trade using Western

financial, shipping and insurance services.

Russia became the top crude supplier to both China and India

in November, as the Asian countries took advantage of the steep

discounts while Western countries eschewed business with Moscow.

For other regions, the top oil exporter set its Arab Light

OSP to northwest Europe at minus $1.50 a barrel against ICE

Brent for February, $1.40 a barrel lower than its price for

January.

Meanwhile, the OSP to the United States was unchanged from

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last month at $6.35 versus ASCI for February.

Saudi term crude supplies to Asia are priced as a

differential to the Oman/Dubai average:

FEB JAN CHANGE

SUPER LIGHT +4.95 +7.35 -2.40

EXTRA LIGHT +3.55 +6.45 -2.90

LIGHT +1.80 +3.25 -1.45

MEDIUM +1.10 +2.10 -1.00

HEAVY -2.25 -1.25 -1.00

Prices at Ras Tanura destined for United States are

set against ASCI:

FEB JAN CHANGE

EXTRA LIGHT +8.20 +8.20 0.00

LIGHT +6.35 +6.35 0.00

MEDIUM +6.15 +6.15 0.00

HEAVY +5.70 +5.70 0.00

Prices at Ras Tanura destined for Northwest Europe

are set against ICE Brent:

FEB JAN CHANGE

EXTRA LIGHT -0.40 +1.40 -1.80

LIGHT -1.50 -0.10 -1.40

MEDIUM -2.80 -1.80 -1.00

HEAVY -5.90 -4.90 -1.00

Prices at Ras Tanura for Saudi oil destined for the

Mediterranean are set against ICE Brent:

FEB JAN CHANGE

EXTRA LIGHT 0.00 +1.80 -1.80

LIGHT -1.50 -0.10 -1.40

MEDIUM -2.50 -1.50 -1.00

HEAVY -6.40 -5.40 -1.00

(Reporting by Florence Tan and Brijesh Patel; Editing by Jon

Boyle, Mark Potter, David Evans and Nivedita Bhattacharjee)