Jakarta, CNBC Indonesia – The largest exporter of crude oil, Saudi Arabia, has lowered the price of this type of crude oil light crude for February 2023 delivery to Asia. The price of oil for delivery in February 2023 is USD 1.45 per barrel lower than the sale price for delivery in January 2023.
“This is the lowest price since November 2021,” oil giant Saudi Aramco said, quoted by Reuters on Friday (06/01/2023).
Quoting Reuters, on Friday (06/01/2023), the decline in the selling price of Arabian crude was in line with market expectations where it was expected that there would be pressure on world oil prices due to the slowdown in demand in China and the decline in supply due to sanctions against Russia.
Four Reuters respondents estimated that the price of oil would be cut by around $1.50 a barrel.
The decline in oil prices was also triggered by changes in sales of Russian oil, which originally went to Europe, have now moved to Asia, in line with advanced countries joining the G7 to cap the price of Russian oil.
Russia was recorded as the largest supplier of crude oil to China and India in November 2022.
For information, Saudi Arabia has set a sale price to North-Western Europe of USD 1.50 per barrel less than ICE Brent for delivery in February 2023, which is USD 1.40 per barrel lower than the price for delivery in January 2023.
In trading on Wednesday (5/1/2022) Brent oil was recorded at $77.84 a barrel, down 5.2% from its previous position. Meanwhile, West Texas Intermediate (WTI) light and sweet crude oil fell 5.3% to $72.84 a barrel. Brent and WTI also fell 4.43% and 4.15% in trading on Tuesday, so much so that in just two days they fell nearly 10%.
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