Saudi cut dented international crude prices
Revived memories of fights for market share
OPEC sources anticipate nonOPEC supply growth will slow

LONDON, Jan 17 Reuters Saudi Arabia39;s cut in official crude oil selling prices to Asia reflects weaker fundamentals of supply and demand, and does not imply a looming shift in OPEC policy or a fight for market share, analysts and industry sources said.

On Jan. 7, Saudi Arabia reduced the February official selling price OSP of its flagship Arab Light crude to Asia to the lowest level in 27 months. Asia is the kingdom39;s larget market, buying the bulk of Saudi crude.

The cut raised concerns in the market about regional and global demand and led international benchmark Brent crude futures to drop by 3 on Jan. 8.

For some observers, the price adjustment revived memories of Saudi policy shifts in March 2020 and November 2014 when the kingdom cut prices and raised output in an attempt to boost its market share.

Analysts and industry sources said the cut this time brought the price of Saudi crude into line with that of other producers. Saudi Arabia had increased the price for five straight months to November 2023.

We do not see the recent cut as indicative of such a looming shift, but instead largely keeping prices in line with other global grades that have reflected a softer oil market, Helima Croft of RBC Capital Markets said.

The Saudi Energy Ministry did not respond to a request for comment.

The supply of crude has…