Oil down amid Saudi price slash, cloudy outlook
Oil prices fell on Monday in Asia amid Saudi Arabia’s crude price cut in the region and an uncertain fuel demand outlook.
Brent oil futures shed plunged 1.06% to $71.84 by 11:50 PM ET (3:50 AM GMT). Crude oil West Texas Intermediate (WTI) futures plummeted 1.02% to $68.58, hovering below the $70 mark.
Saudi Arabia’s Saudi Aramco announced on Sunday that it will cut October prices for all crude grades sold to Asia, the oil company’s largest customer, by at least $1 a barrel.
The US jobs report, released on Friday, showed non-farm payrolls were at 235,000—the smallest gains in seven months. The report also revealed the US unemployment rate to be at 5.2% for August. The weak data darkened the fuel demand outlook and delayed expectations for the US Fed’s asset tapering timeline.
However, losses were mitigated by the prospect of a limited recovery of US supplies as Hurricane Ida continues its onslaught.