Saudi leans bullish on January supply and demand in Asia, US

• In its first market action since last week's OPEC+ meeting, the Kingdom raises prices to the US and Asia, showing little concern with oil supply / demand balances in January, despite Omicron, OPEC+ supply growth, and SPR releases
• Each month Saudi sends consumers a pricing update, whereby Saudi posts export prices relative to hub prices (Saudi light crude to Europe relative to Brent, for example), with relative premiums reflecting the Kingdom's view that the market is tight, or discounts indicating the opposite
• In the face of Omicron, SPR releases and increased OPEC+ supplies, Saudi has raised prices to Asia and the US (CL1:COM, USO) by 60c and 40c per barrel, respectively, while lowering prices to Europe (CO1:COM)
• Not only is Saudi increasing prices, the absolute price premium to Asia is now at the highest level since the Pandemic began, with the Kingdom commanding a $3 premium relative to hub pricing in Asia, versus a $7 discount at pandemic lows
• With speculators doubting OPEC+, and their ability to increase supplies, this weekend's pricing release from Saudi is likely to fuel the bull's belief that OPEC is nearly tapped out