Global oversupply warning sounded! Saudi flagship crude oil prices drop to five-year low.

Notice that, due to continued signs of oversupply in the global oil market, Saudi Arabia has lowered its flagship crude oil prices to the lowest level in five years. According to a latest price list, Saudi state producer Saudi Aramco has cut the price of its Arab Light crude oil for Asian customers by 60 cents per barrel above regional benchmarks for delivery in January next year. This is the lowest price since January 2021, and the decrease is in line with findings from surveys of refineries and traders. OPEC+ confirmed last weekend its previous decision to pause production increases in the first quarter of next year, citing weak seasonal demand in the winter months in most regions of Asia, Europe, and North America. Crude oil prices have fallen by about 16% so far this year, due to a surge in supply from the Americas and OPEC+ group's own production increases, which have outpaced sluggish demand growth. The International Energy Agency (IEA) predicts a record oversupply until 2026, while Wall Street banks including Goldman Sachs believe that futures prices will decline. Saudi Aramco has reduced all crude oil prices for Asian buyers, with Arab Medium crude turning into a discount for the first time since the end of 2020. After the price announcement, global benchmark Brent crude oil futures erased earlier gains, with trading relatively unchanged.