By Muyu Xu
       Dec 5 (Reuters) - 
    Saudi Arabia, the world's top oil exporter, cut the January
official selling price (OSP) for its flagship Arab Light crude
for Asian buyers to a 10-month low, on concerns over faltering
demand and a potential increase in Russian competition.
  
        The OSP for January-loading Arab Light to Asia was
trimmed by $2.20 a barrel from December to $3.25 a barrel over
Oman/Dubai quotes, state oil producer Saudi Aramco
said on Monday. 
  
        The new OSP is just above the previous low of $2.80 per
barrel, set for March 2022.
  
        The change was in line with 
    market forecasts
     for a cut of about $2 a barrel. 
    The Organization of the Petroleum Exporting Countries (OPEC)
and allies including Russia, known as OPEC+, on Sunday decided 
to keep unchanged their plan to cut production.
        The backwardation in the Dubai market structure narrowed
during trading last month, implying that fears over near-term
supply tightness for crude were easing.
  
        The premium for front-month Dubai over the price for the
third-month averaged $2.76 a barrel in November, down from $4.73
in October.
  
        Saudi Arabia's OSP adjustment also came after the Group
of Seven (G7) nations and Australia agreed to a 
    $60 per barrel price cap
     on Russian seaborne crude oil. 
  
        "Although the market remains cautious on lifting Russian
crude as the price cap is just set, there is no doubt that more
cargoes will flow to Asia and compete with the Middle Eastern
crude," said a Singapore-based trader.
  
        Saudi Arabia cut its January Arab Light OSP to northwest
Europe by $1.80 a barrel from December and kept the price to the
United States unchanged.
  
             Saudi term crude supplies to Asia are
 priced as a differential to the Oman/Dubai average:
 
                                         CHANGE
                     JAN        DEC      
                                         
 SUPER LIGHT       +7.35      +9.15      -1.80
 EXTRA LIGHT       +6.45      +6.45      0.00
 LIGHT             +3.25      +5.45      -2.20
 MEDIUM            +2.10      +3.20      -1.10
 HEAVY             -1.25      +1.25      -2.50
                                         
             Prices at Ras Tanura destined for United
 States are set against ASCI:
 
                                         
                     JAN        DEC      CHANGE
                                         
                   +8.20      +8.20      0.00
 EXTRA LIGHT                             
                                         
                   +6.35      +6.35      0.00
 LIGHT                                   
                                         
                   +6.15      +6.15      0.00
 MEDIUM                                  
                                         
                   +5.70      +5.70      0.00
 HEAVY                                   
                                         
                                         
             Prices at Ras Tanura destined for
 Northwest Europe are set against ICE Brent:
 
                                         
                     JAN        DEC      CHANGE
                                         
                   +1.40      +3.40      -2.00
 EXTRA LIGHT                             
                                         
                   -0.10      +1.70      -1.80
 LIGHT                                   
                                         
                   -1.80      -1.30      -0.50
 MEDIUM                                  
                                         
                   -4.90      -4.90      0.00
 HEAVY                                   
                                         
                                         
             Prices at Ras Tanura for Saudi oil
 destined for the Mediterranean are set against ICE
 Brent:
 
                                         
                     JAN        DEC      CHANGE
                                         
                   +1.80      +3.50      -1.70
 EXTRA LIGHT                             
                                         
                   -0.10      +1.40      -1.50
 LIGHT                                   
                                         
                   -1.50      -1.00      -0.50
 MEDIUM                                  
                                         
                   -5.40      -5.40      0.00
 HEAVY                                   
                                         
 (Reporting by Muyu Xu in Singapore, Arpan Varghese and Seher
Dareen in Bengaluru; Editing by Jane Merriman and Bradley
Perrett)