Top oil exporter Saudi Arabia on Tuesday lowered the price of its flagship Arab Light crude to Asian customers in January for the first time in seven months, sources familiar with the matter said, reacting to the weakening premiums in physical market amidst supply overhang concerns.

Saudi Aramco cut the official selling price (OSP) for January-loading Arab Light to Asia by 50 cents a barrel from December to $3.50 a barrel over Oman/Dubai quotes, the sources said.

(Reporting by Muyu Xu. Editing by Jane Merriman)