Reuters: Saudi Arabia is forced to reduce the price of oil

According to the correspondent of Fars News Agency, quoted by Reuters, Saudi Arabia, following the downward trading cycle in the Middle East cash market and due to concerns about the decrease in demand in China and also the increase in Russian crude oil in Asia after December 5, may be the official price of its oil for sale. In Asia, it will decrease in January.

According to 7 participants in the Reuters poll, the official price of Saudi light oil will probably decrease by about 2 dollars per barrel compared to last month, following the decline in the price of the Dubai oil index.

This reduction in the price of Saudi oil in January 2023 will bring it to the lowest figure in the last 10 months.

One of the respondents said: “Decreasing demand in China as a result of expanding corona restrictions and the prospect of increased Russian oil entering Asia has reduced the market atmosphere.”

Analysts cut their forecasts for oil consumption in China and expect demand to recover after March 2023.

Saudi Arabia is expected to cut the price of its medium oil by about $1.50 a barrel and its heavy oil by about a dollar a barrel for January sales, according to a Reuters poll.

The official price of Saudi oil is usually published on the fifth of every month and it determines the pricing process of crude oil from Iran, Kuwait and Iraq and affects the price of 9 million barrels of oil that are sent to Asia every day.

The Saudi oil company, Aramco, determines the price of oil in this country based on the suggestions of customers and after calculating the change in the value of its oil and based on the profitability and price of oil products in the last month.

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