"Saudi Arabia Slashes Arab Light Crude Price to 27-Month Low for Asian Market"

Saudi Arabia has reduced the February price of its Arab Light crude to Asian customers to the lowest level in 27 months, in response to competition from rival suppliers and concerns about supply overhang. The price cut, the largest in 13 months, reflects market expectations and aims to make Saudi crude more competitive compared to other regional options. Despite OPEC+ output cuts, market participants remain skeptical that the reduction will be sufficient to prevent a build-up in global oil inventories and fuel an oil price rally until at least the second quarter of 2024.