Amid diminishing optimism for a recovery in demand due to the COVID-19 pandemic, Saudi Arabia slashed the monthly price of the largest supply to Asia for the past five months, causing oil prices to plummet further this Monday. WTI oil prices fell further by 1.86% to $ 39.03 per barrel according to Investing.com data at 13.33 GMT + 7 and Brent oil prices also fell 1.52% at $ 42.01 per barrel.
As Reuters reported on Monday (07/09) evening, the world remains flooded with supplies of crude oil and fuel even though OPEC + is cutting supply and the government is trying to stimulate the global economy as well as oil demand. As a result, refineries reduce fuel production, causing oil producers such as Saudi Arabia to lower prices to offset falling demand for crude oil.
The commemoration of Labor Holiday in the United States on Monday marked the end of the peak summer oil demand in the United States and renewed investors focus on currently slowing fuel demand in the United States. Saudi Arabian oil exporters finally cut official selling prices in October for the Arab Light crude, which it sold to Asia by the largest margin since last May. By region, Asia is the largest market for Saudi Arabia at the moment.
Picture from pixabay.com
