Saudi Aramco January prices reduced across crude grades amid global market pressures

Saudi Aramco January Prices for Arab Light crude oil have been reduced for Asian buyers, reflecting shifts in the global energy market. The official selling price (OSP) for Arab Light crude was lowered by 80 cents, now set at $0.90 per barrel above the regional benchmark.

This adjustment extends to other crude grades, with Arab Extra Light and Super Light OSPs reduced by 60 cents and 70 cents per barrel, respectively. Arab Medium and Heavy Grades also saw a 70-cent reduction per barrel, underscoring Aramco’s responsiveness to changing market conditions.

In North America, the January OSP for Arab Light was set at $3.80 per barrel above the Argus Sour Crude Index, reflecting continued strong pricing in that market. Aramco’s portfolio includes five distinct grades of crude—Super Light, Arab Light, Arab Extra Light, Arab Medium, and Arab Heavy—distinguished by their density levels.

These pricing adjustments come amid a challenging period for global oil markets. Brent crude prices have dipped over 2% this week, while West Texas Intermediate (WTI) experienced a 1% decline. The volatility is attributed to weak demand signals, particularly from China, and concerns about OPEC+ production policies.

Last week, OPEC+ extended its production cuts, delaying scheduled increases until April 2025 and pushing full output recovery to 2026. Market observers suggest that the prospect of OPEC+ ramping up production if prices rebound is adding pressure on current price levels.

Bank of America predicts Brent crude prices will average $65 per barrel in 2025, despite a projected rebound in global oil demand growth to 1 million barrels per day. HSBC, meanwhile, revised its surplus estimate for next year to 0.2 million barrels per day, down from 0.5 million barrels.

For now, Brent crude has remained in a tight range of $70-$75 per barrel over the past month. Analysts cite weak demand signals and geopolitical uncertainties in the Middle East as contributing factors. Aramco’s price cuts reflect its strategy to remain competitive in an evolving market landscape while balancing its supply commitments globally.