Oil prices dip on Saudi price cuts, Middle East tensions persist
Investing.com-- Oil prices fell in Asian trade on Monday after Saudi Arabia slashed the prices of its Asian crude exports to over two-year lows, although losses were limited as traders watched for any potential supply disruptions from the Middle East.
An escalation in the Israel-Hamas conflict, coupled with continued disruptions in shipping activity in the Red Sea, saw oil prices mark a strong first week of 2024.
But bigger gains were held back by a rebound in the dollar, while concerns over demand also remained in play following another round of weak economic data from China.
Saudi Arabia's price cuts also presented another sign of weakness to markets, as the world's largest oil exporter grappled with a slowdown in demand, particularly in Asia.
Brent oil futures expiring March fell 0.4% to $78.48 a barrel, while West Texas Intermediate crude futures fell 0.4% to $73.57 a barrel by 20:02 ET (20:02 GMT).
While crude prices marked some gains over the past week, they were still nursing an over 10% loss through 2023. High interest rates and slowing economic activity are expected to weigh on demand this year, while oil markets are also expected to remain largely well-supplied.
Saudi Arabia slashed the price of its flagship Arab Light crude for Asian customers to a 27-month low, state producer Saudi Aramco (TADAWUL:2222) said on Sunday.
Prices on February-loading Arab Light to Asia were cut by $2 below the Oman/Dubai regional benchmark, while prices on crude supplied to parts of Europe and the Mediterranean were also cut by as much as $2 to a hair above the Brent benchmark.
The move comes as the country faces increased competition for its crude exports from limited demand and increased oil production by other Middle Eastern
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