Saudi Arabia seen giving smaller oil discounts to Asia

Singapore

SAUDI Arabia will probably offer smaller discounts to ship crude to Asia amid speculation that demand will increase after benchmark prices dropped almost 50 per cent last year.

The world's biggest oil exporter will announce February official selling prices to buyers in Asia in coming days, after offering its Arab Light grade at the biggest discount in at least 14 years the previous month. The Organization of Petroleum Exporting Countries' (Opec) largest producer may narrow the discount, according to 12 of 15 traders and refiners in a Bloomberg News survey through Monday. Three respondents forecast price differentials to be unchanged.