Saudi Arabia’s state oil giant Saudi Aramco earlier on Sunday announced to cut prices of crude grades sold to Asian region by at least $1/barrel. Asian region is the biggest buyer of crude grades of the state enterprise. The price cut is interpreted as global oil is well supplied.
Oil prices extended downward trend on Monday morning with WTI crude oil inching down to $68.38/bbl. (-1.31%) and BRENT Crude oil fell to 71.63 (-1.35%) as of Thailand time 9:55am. The decline added to the downward trend on Friday after U.S. jobs report signaled the market of weak economic recovery implying weak demand for fuels.
U.S. production in the Gulf Coast struggling to recover amid hurricane Ida, the government is releasing crude from strategic petroleum reserves. According to official data released on Friday, roughly 1.7 million barrels of oil and 1.99 billion cubic feet of natural gas output remains offline.