OPEC+ to maintain production cuts, Saudi Arabia raises crude oil prices for February.

Saudi Arabia will raise oil prices for Asian buyers next month, a move that suggests the world's largest oil exporter may see supply tighten in its biggest market after OPEC+ recently delayed plans to increase production. According to a price list seen by Bloomberg, state-owned oil producer Saudi Aramco has set the price of its main Arab Light crude at a premium of $1.50 per barrel to the regional benchmark price in February. This increase is 60 cents higher than forecasted by Bloomberg's survey of traders and refiners, which predicted a 10-cent increase. With weak demand growth possibly leading to increased oil surplus inventories, the London benchmark oil price fell about 3% last year and is currently hovering around $75 per barrel. Last year, the Middle East region faced numerous geopolitical risks that traders largely ignored, leading to a decrease in the risk premium already factored into the market. They are now watching to see if the incoming Trump administration will push for increased oil production in the Middle East or cut supply through sanctions on certain countries. Last month, the OPEC+ alliance led by Saudi Arabia and Russia agreed to further delay a production increase plan originally set to take effect in early January by three months, following two previous delays. The prospect of oversupply prompted the organization to extend production cuts into next year to avoid putting huge pressure on the market.