Oil stocks slide as Saudi Arabia cuts crude prices
By Frank Prenesti
Date: Monday 08 Jan 2024
(Sharecast News) - Oil stocks were hit as major producer Saudi Arabia cut prices across the board, sending benchmark crude sharply lower on Monday.
Brent crude was down 3.91% to $75.68 a barrel, while West Texas Intermediate fell 4.46% to $70.52.
Geopolitical tensions in the Middle East caused by Israel's bombing of Gaza in retaliation for an attack by the Islamic Hamas group and Libya's National Oil Corporation declaring force majeure at the Sharara oilfield were still propping up prices on supply constraint worries.
However, record shale oil production in the US and a weaker outlook for the global economy driven by lacklustre demand in China forced the Saudis to cut prices.
Producer Saudi Aramco cut the official selling price for its flagship Arab Light crude to a $1.50-a-barrel premium to the regional benchmark for February, its lowest level since November 2021. The $2-a-barrel reduction was bigger than expected.
Reporting by Frank Prenesti for Sharecast.com
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