Oil Prices Slide as Saudi Arabia Signals October Price Cuts
Oil Prices Decline as Saudi Arabia Considers Price Cuts
Oil prices slide as Saudi Arabia contemplates price cuts for October, further fueled by OPEC+ output rises. U.S. crude futures dropped to $72.89 at 02:30 GMT, bouncing back slightly to $73.91 by 09:00 GMT. This decline raises concerns over demand slowdown from the U.S. and China, the world’s top oil consumers.
Saudi Arabia Eyes Price Cuts for Asia
Saudi Arabia, the world’s largest oil exporter, is expected to lower its crude oil prices for Asia in October. Analysts anticipate a decrease of 50 to 70 cents per barrel for the flagship Arab Light crude, attributed to a dip in Middle East benchmark prices. Despite a potential price cut, some analysts suggest the Official Selling Price (OSP) for Arab Light may hold steady, citing recent price recovery.
OPEC+ Set to Increase Supply
- OPEC+ plans to boost production by 180,000 barrels per day in October.
- This increase raises concerns about the additional pressure on price levels.
Bearish Market Outlook
The outlook for crude prices remains bearish, driven by China’s manufacturing downturn and declining oil consumption in the U.S. Analysts warn these factors may prompt OPEC to reconsider production increases, potentially delaying efforts to stabilize prices.
Technical Analysis of Light Crude Oil Futures
- Light crude oil futures are at a crucial level around $73.43.
- Further losses could see prices tumbling towards $71.02 if support breaks.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.