Oil in shambles after Saudi price cuts
Oil prices were unsteady on Tuesday, with investors struggling with worries over demand. Saudi Arabia made sharp cuts on crude contract prices for Asia.
Brent crude futures for November inched up 0.1%, or 4 cents, to $72.26 a barrel by 0056 GMT, following its 39-cent drop on Monday.
U.S. West Texas Intermediate (WTI) crude for October shed 0.6% at $68.88 a barrel, down 41 cents from Friday’s close. WTI futures have no settlement price for Monday due to a U.S. holiday.
Demand concerns have made a comeback following state oil group Saudi Aramco’s announcement that it will cut October official selling prices for all crude grades sold to Asia by at least $1 a barrel.
The sharp cuts are an indication that the consumption in Asia, the global top-importer of oil, is still weak. The cuts coincided with the murky economic outlook in the region, brought by the lockdowns imposed to combat the increase in the COVID-19 Delta variant infection.
In related news, more than 80% of oil production in the U.S. Gulf of Mexico still remains closed due to Hurricane Ida.