The Magazine for Asian Investors
Saudi Arabia announced a reduction in crude oil prices for customers in Asia. Experts see behind this a misjudgement on the part of Saudi Arabia on demand in Asia. Restrictions are still in place in large parts of Asia due to the Covid-19 pandemic.
WTI crude futures were up 1.02% at $68.86 a barrel.
Brent crude futures were up 1.06% at $72.21 a barrel as of 8:20 a.m. ET.
It is the first time in four months that Saudi Arabia will cut oil prices for Asian customers in October. Prices for all grades of crude oil will fall by at least $1/barrel, which is 20-40 cents more than expected. Earlier this year, the price was first revised upward.
It was only at its July meeting that OPEC+ agreed to increase oil production by 400,000 barrels per day from August to December 2021.
The next OPEC+ meeting on oil production policy will be held on October 4.
At the same time, the impact of the Covid 19 pandemic is still a factor for oil prices. But oil fundamentals have strengthened the oil market.
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Tuesday, September 7, 2021