WTI Crude Oil Falls as Saudi Arabia Cuts Official Selling Prices
Arslan Butt • 1 min read
WTI crude oil is starting the new week on a bearish footing, falling by over $1 per barrel after Saudi Arabia cut oil prices to Asia even as markets remain under pressure over concerns about weak demand in the wake of the coronavirus crisis. At the time of writing, WTI]] crude oil is trading at around $39.23 per barrel.
Leading oil exporter Saudi Arabia brought down official selling price for crude oil sold to Asian markets. The cut in prices was the steepest since May and raises fears of oversupply even as demand remains well below pre-pandemic levels.
WTI crude prices slid to a near two-month low over worries about a supply glut in global markets even as demand fails to pick up despite economies reopening around the world. Even though OPEC and allies have implemented deeper production curbs and governments have rolled out various stimulus measures, economic activity remains weak in most countries due to the pandemic.
Last month, OPEC+ eased their production cuts to 7.7 million bpd when crude oil prices began to recover from the historic lows it hit on account of the pandemic. As crude oil prices began to improve, drillers returned to oil wells in the US, spurring production and adding to oversupply woes.