SINGAPORE, Jan 7 (Reuters) - Top oil exporter Saudi Arabia on Sunday cut the February price of its flagship Arab Light crude to Asian customers to the lowest level in 27 months, a company statement showed, amid competition from rival suppliers and concerns about supply overhang.
Saudi Aramco slashed the official selling price (OSP) for February-loading Arab Light to Asia by $2 a barrel from January to $1.50 a barrel over Oman/Dubai quotes.
The price cut is in line with market expectations, as refiners called for competitive prices from Saudi Arabia comparing to crude oil supplied from other Middle Eastern producers and the arbitrage cargoes from the Atlantic Basin.
The Asian physical oil market softened over the past month, reflecting expectations of less supply tightness in the near term and weaker demand as some Asian refineries are scheduled to shut down for maintenance in the spring season of the northern hemisphere. (Reporting by Muyu Xu Editing by Tomasz Janowski and Mark Potter)
