Saudi Sees Its Shadow

Saudi Arabia Raises Price of Main Oil Grade for Asian Buyers

Saudi Arabia raised the cost of its oil sales to Asia in February, prompting speculation the world’s biggest exporter is retreating from using record price discounts to defend market share.

Saudi Arabian Oil Co. will sell its Arab Light grade for $1.40 a barrel less than a regional average next month, the company said yesterday in a statement. That’s a narrowing from January, when the discount was $2, the biggest in at least 14 years.

Since the Saudis and their allies have discussed $40 as the point at which production would be cut, a reduction in discounts as West Texas Intermediate Crude sinks below $50 and Brent heads to the low $50s is not a surprise.