Saudi Arabia may cut Asia oil prices to a 10-month low due to lower Chinese demand

Saudi Arabia, the world’s largest oil exporter, may cut the price of crude oil exported to Asian markets in January. Middle East trade stalled over concerns about slowing demand in China and a surge in Russian crude in Asia after Dec. 5.

Saudi Arabia may cut the official selling price (OSP) of Arabian light oil by about $2 per barrel from the previous month, according to price changes in the Dubai oil market. This time, the oil price adjustment will result in the oil price reaching its lowest level in 10 months in January 2023.

China, the world’s largest crude oil importer, has urged local authorities to take tougher measures to contain COVID-19, an outbreak that has overshadowed the recovery trend in energy demand.

In addition, analysts have lowered their forecasts for oil consumption in China, predicting that demand will recover after March 2023.

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