Saudi Arabia cuts January crude oil price, but is it enough?

Saudi crude is mainly sold under long-term contracts, but these usually contain clauses that allow for variations in volumes delivered, either at Aramco’s behest or the request of the clients. — Reuters

SAUDI Aramco cut its key oil prices for Asia for January, as had been expected, but the key question is whether the drop is big enough to tempt refiners to buy more crude.

Aramco, the world’s largest crude exporter, trimmed the official selling price (OSP) for its flagship Arab Light grade to a premium of US$3.25 (RM14.24) a barrel over the regional benchmark Oman and Dubai quotes for January-loading cargoes.