Saudi Arabia cut the official selling price of all oil varieties it will sell to Asia. Arab light will sell at $ 2.20 a barrel, $ 1.10 lower than the previous month. Other varieties will also be sold $ 1.00 - $ 1.30 lower.
Industry officials already expected Saudi Arabia to reduce its selling price for February, after raising them to $ 3.30 a barrel for January.
The decision back then implied high demand expectations, but today's cut in prices suggests that demand could be weaker in Asia.
That is also why oil prices outside Asia remained largely unchanged, with the exception of the $ 0.20 / bbl price cut in Arab Light vs. ICE Brent.
The ongoing turmoil in Kazakhstan also affected oil prices. Although the clashes have not yet affected the country's oil production, the threat remains.
Aside from this news, oil flows in North Dakota and Western Canada have been disrupted by colder-than-normal winter temperatures.
