Saudi Arabia reduced oil prices

Saudi Arabia will cut major crude oil prices in February for buyers in all regions, including the main Asian market, due to continued weakness in the market.

Oil consumption usually decreases in February and March; refineries use this period to close some facilities for periodic maintenance. At the same time, strong global supply, including in the US, increases the likelihood of a surplus, forcing the OPEC+ group led by Saudi Arabia and Russia to extend production cuts into this year.

State producer Saudi Aramco cut the price of its flagship Arab Light for Asia to between $2 and $1.50 a barrel above the reference level. That's bigger than the $1.25 a barrel drop estimated in a Bloomberg survey of refiners and investors. Aramco also reduce all prices for February delivery to Northwest Europe, the Mediterranean and North America.