Weak demand raises concerns? Saudi Aramco lowers December crude oil selling prices to Asia.

Saudi Arabia has lowered the official selling price of its flagship product, Arab Light crude oil, for the Asian market in December by $1.20 per barrel, bringing its premium over the regional benchmark to $1 per barrel. Previously, refiners and traders surveyed had expected Saudi Aramco to cut the price of this grade of crude oil by $1.25. Saudi Arabia and some other major oil-producing countries in OPEC+ announced on November 3 that they plan to pause output increases in the first quarter of next year after a small increase in December. This move aims to address signs of oversupply in the market while trying to balance their strategies to compete for market share. This supply pause comes at a time of seasonal soft demand, and the market is closely watching how the sanctions on the two largest oil producers in Russia by the United States will impact supply. Oil prices in the London market have fallen by nearly 15% this year, trading below $65 per barrel. Despite an immediate rebound in oil prices following the latest sanctions on the Russian oil industry, prices have since fallen back to levels roughly similar to those before President Trump took sanction action. Aramco also lowered the official selling price of its medium and heavy grades of crude oil for the Asian market in December by $1.40 per barrel each, and reduced the official selling price of its extra-light and ultra-light grades of crude oil by $1.20 per barrel each.