Asian oil prices may move sideways

The cause is attributed to weakening refinery margins across the region, reducing demand for physical goods.

Saudi Aramco, the Saudi Arabian energy giant, is expected to keep the price of its Arab Light crude exported to Asia unchanged in December, according to a Bloomberg survey. The world’s largest crude exporter had previously raised prices after June due to strong demand and falling inventories.

While Brent crude prices have risen since Middle East tensions began, global energy markets have shown signs of weakness as profits from turning crude into fuel have fallen, while the cost of transporting goods has risen.

Citigroup forecasts that crude flows into China, the world’s top importer, will be “more moderate.” Higher prices could curb buying for storage in the world’s second-largest economy.

Saudi Arabia, which leads the OPEC+ alliance along with Russia, has been at the forefront of efforts to support crude prices by agreeing to group-wide supply cuts.

In a Bloomberg survey, more than half of respondents expected Arab Light crude prices to stabilize.

Saudi Aramco typically announces crude oil prices to global customers during the first five days of the month.

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