Price for Arab Light oil may decrease by $2 per barrel for the Asian market

In January, the important oil exporting country Saudi Arabia may decrease the cost of fuel for Asian countries. This is caused by fear of possible low demand in China and the growing supply of Russian oil after December 5. 

Reuters interviewed several respondents. They declared that the official sale price of the main export type Arab Light can be reduced compared to the previous month. The cost of oil will be lower by almost $2. It is in line with a similar decline in the benchmark in Dubai.

According to one of the respondents, the market sentiment has worsened. It occurred due to the falling demand in China caused by tightened anti-COVID measures and the probable growth of the oil supply from the Russian Federation. 

Analysts changed the forecasts related to oil consumption in PRC. They await the demand to return to its former level only after March 2023.  

From November, the OPEC+ countries begin to reduce the raw material extraction to maintain the oil prices. But it wasn’t enough to lessen concerns of oversupply.