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Oil dropped after Saudi Arabia cut official selling prices for all regions, underscoring a worsening outlook and outweighing concern over Red Sea tensions and supply disruptions in Libya.
Global benchmark Brent fell to below $78 a barrel after rising by 2,2 percent last week, with West Texas Intermediate around $73. State producer Saudi Aramco cut its flagship Arab Light price to Asia by a more-than-expected $2 a barrel amid persistent weakness in the global crude market.
Oil is coming off the back of the first annual decline since 2020, with losses driven by rising supplies from outside the OPEC+ cartel and concerns that demand growth will slow this year, including in leading importer China. With 2024 barely started, Wall Street is expecting more challenges ahead for crude, with major banks already cutting their outlooks for this year.
“Supply disruptions and Middle East tension continue to provide some support,” said Warren Patterson, head of commodities strategy at ING Groep NV.
In the Middle East, container giant A.P. Moller-Maersk A/S will continue diverting ships away from the Red Sea after a string of vessel attacks by Houthi rebels. — Bloomberg.
Online Reporter