Oil prices fell on Monday amid concerns over the outlook for demand after Saudi Arabia, the world’s top exporter, cut its prices for Asian buyers over the weekend.
Benchmark Brent crude futures dropped half a percent to $72.22 a barrel, while U.S. crude futures were down 0.6 percent at $68.89.
Losses were capped by a U.S. supply that is likely to remain limited as the recovery from Hurricane Ida continues.
State oil giant Saudi Aramco on Sunday cut its October official selling prices for Asia and Mediterranean-bound crude and left prices to Northwest Europe and the U.S. unchanged amid concerns about demand and increasing global supplies.
October prices for all crude grades sold to Asia have been cut by at least $1 a barrel, significantly more than had been expected.
The larger-than-expected cut for Asia was driven by several factors, including the weak recovery in the region’s oil demand, the easing of OPEC+ output restrictions and a Saudi desire to regain market share.
The material has been provided by InstaForex Company – www.instaforex.com