Oil prices fell on Monday, adding to losses in the market after Saudi Arabia, the world's largest exporter of crude oil, cut oil futures prices for Asia over the weekend, reflecting concerns about expectations of lower demand for crude in the world.
Brent crude futures for November fell 49 cents, or 0.67 percent, to $72.12 a barrel.
West Texas crude recorded a price of 68.82 dollars a barrel in October, down 47 cents, or 0.68 percent.
State oil giant Saudi Aramco notified customers in a statement on Sunday that it would reduce October's official selling prices for all grades of crude sold to Asia, its largest buying region, by at least $1 a barrel, a larger reduction than expected by a Reuters poll of refineries. Asian.
“The Saudi oil price cut to Asia created a short negative pressure this morning, which is what the market is recovering from,” Reuters quoted Tamas Varga of PVM Oil Associates as saying.
Global oil supplies are increasing as the Organization of Petroleum Exporting Countries (OPEC) and its allies (OPEC+) increase production by 400,000 barrels per day each month between August and September.
“Given that OPEC + continues with its plan to increase production per month, despite weak data from China and the United States raising slowdown fears, Saudi Arabia is looking for a market share in the region, oil is likely to remain under pressure."
The US government is releasing crude oil from its Strategic Petroleum Reserves as production on the US Gulf Coast struggles to recover.
The hurricane prompted US energy companies last week to cut the number of rigs drilling for oil and natural gas.
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