The cuts in Saudi Arabia's Feb. official crude selling prices (OSPs) for Arab Light from the Oman/Dubai average plus $4.15/bbl to plus $2.05/bbl for its Asian buyers will unlikely increase purchases. Industry sources believe refiner demand is to remain stable. "We will nominate based on demand from our refineries, not based on prices because after Saudi cut its OSPs, Kuwaiti, Iraqi, and Iranian crude prices will also be cut," a Northeast Asia refiner source said. "We see stable demand from refineries in Feb." An Asian-based trader added, "The price cut was a surprise, we expected a cut in line with the weaker distillate margins, but we didn't think it would be this deep."
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