Oil slips as Aramco cuts November Asia prices to six-year low

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Summary · why it matters

Oil prices edged lower early Tuesday after Saudi Aramco unexpectedly slashed its November crude prices for Asian sales to a six-year low, while raising them slightly for northwest Europe and the Mediterranean. West Texas Intermediate crude futures fell 0.3% to $89.16 a barrel by 19:21 ET (23:21 GMT), and Brent oil futures settled down 2% on Monday. Reuters reported last week that Aramco was seen offering deep discounts for oil loaded off Oman to offset record-high freight rates. The cuts came amid growing concerns that overheated crude will dent global demand in the long term, especially as the war in the Middle East showed few signs of easing. Crude fell sharply on Monday amid some signs of improving Middle East exports, while the Group of Seven nations promised to increase supplies by 100 million barrels, though it was unclear whether the new oil would fall under an ongoing emergency release. Gulf oil exports rose to pre-war levels for about half of September, shipping data showed on Monday, driven by Saudi loading from both the Red Sea and the Gulf, and Saudi-backed Yemeni forces retook coastal areas around the Bab el-Mandeb Strait from the Iran-backed Houthis this week, though clashes continued and a U.S.-Iran standoff in the Strait of Hormuz remained.

Impact on assets 4

Energy Transition & Power Demand▲
Artificial Intelligence▲
Others▼
⛏Brent Crude Oil Futures
BRENT
▼ NegativeSupplyrelevance

Saudi Aramco's deep November price cuts and rising Gulf exports point to oversupply, weighing on Brent crude.

⛏Crude Oil WTI Futures
WTI
▼ NegativeSupplyrelevance

Aramco's unexpected November price cuts to a six-year low for Asia signal ample supply and weaker demand, pressuring WTI crude.

Off-coverage companies 1

Saudi Aramcoi
Private▼ NegativePricingrelevance

Aramco slashed its November crude prices for Asian sales to a six-year low, cutting its own product prices.