{"id":15718,"date":"2024-01-08T23:48:38","date_gmt":"2024-01-08T22:48:38","guid":{"rendered":"https:\/\/thedailyleaks.com\/?p=15718"},"modified":"2024-01-08T23:49:36","modified_gmt":"2024-01-08T22:49:36","slug":"oil-drops-sharply-as-saudi-price-cuts-raise-global-demand-worries","status":"publish","type":"post","link":"https:\/\/thedailyleaks.com\/oil-drops-sharply-as-saudi-price-cuts-raise-global-demand-worries\/","title":{"rendered":"Oil drops sharply as Saudi price cuts raise global demand worries"},"content":{"rendered":"
Jan 8, 2024 — Oil prices fell over 3% on Monday on sharp price cuts by top exporter Saudi Arabia and a rise in OPEC output that offset supply concerns generated by escalating geopolitical tension in the Middle East.<\/p>\n
Brent crude settled down $2.64, or 3.4%, at $76.12 a barrel, while U.S. West Texas Intermediate crude futures lost $3.04, or 4.1%, at $70.77 a barrel.<\/p>\n
Both contracts climbed more than 2% in the first week of 2024 as geopolitical risk in the Middle East intensified after attacks by Yemen’s Houthis on ships in the\u00a0Red Sea<\/a>.<\/p>\n On Sunday, rising supply and competition from rival producers prompted\u00a0Saudi Arabia<\/a>\u00a0to cut the February official selling price (OSP) of its flagship Arab Light crude to Asia to the lowest level in 27 months.<\/p>\n ALSO READ:\u00a0UAE\u2019s prime minister reshuffles cabinet<\/a><\/strong><\/p>\n “That’s raising concerns about demand in China and global demand as well,” Price Futures Group analyst Phil Flynn said. “The stock market is off to a weak start this year and this news from Saudi Arabia has caused the bottom to fall out.”<\/p>\n A Reuters survey on Friday found that OPEC oil\u00a0output rose<\/a> in December as increases in Angola, Iraq and Nigeria offset continuing cuts by Saudi Arabia and other members of the wider OPEC+ alliance.<\/p>\n The boost came ahead of further OPEC+ cuts in 2024 and as Angola exited from OPEC starting this year, factors which are set to lower January output and\u00a0market share<\/a>.<\/p>\n “If we were just to focus on the fundamentals, including higher inventories, higher OPEC\/non-OPEC production and a lower than expected Saudi OSP, it would be impossible to be anything other than bearish on crude oil,” said IG analyst Tony Sycamore.<\/p>\n “However, that doesn’t take into account the fact that geopolitical tensions in the Middle East are undeniably rising again, which will mean limited downside.”<\/p>\n U.S. Secretary of State Antony Blinken held more talks with Arab leaders on Monday as part of a diplomatic push to stop the war in Gaza from\u00a0spreading further<\/a>.<\/p>\n The conflict has already sparked violence in the Israeli-occupied West Bank, Lebanon, Syria and Iraq, and also led to Houthi attacks on Red Sea shipping lanes.<\/p>\n Meanwhile, the oil price slide was tempered by a\u00a0force majeure<\/a> by Libya’s National Oil Corporation on Sunday at its Sharara oilfield, which can produce up to 300,000 barrels per day.<\/p>\n","protected":false},"excerpt":{"rendered":" Jan 8, 2024 — Oil prices fell over 3% on Monday on sharp price cuts by top exporter Saudi Arabia and a rise in OPEC output that offset supply concerns generated by escalating geopolitical tension […]<\/a><\/p>\n<\/div>","protected":false},"author":2,"featured_media":15719,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4,2],"tags":[2881,802,26,2912],"coauthors":[25],"class_list":{"0":"post-15718","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"category-top-news","9":"tag-middle-east","10":"tag-oil","11":"tag-opec","12":"tag-saudi"},"yoast_head":"\n