SINGAPORE- Oil prices extended losses on Monday, falling more than 1 percent, after the world’s top exporter Saudi Arabia slashed crude prices for Asia over the weekend, signaling demand concerns and that global markets are well supplied.
Brent crude futures for November fell 90 cents, or 1.2 percent, to $71.71 a barrel while US West Texas Intermediate crude for October was at $68.45 a barrel, down 84 cents, or 1.2 percent.
State oil giant Saudi Aramco notified customers in a statement on Sunday that it will cut October official selling prices (OSPs) for all crude grades sold to Asia, its biggest buying region, by at least $1 a barrel. The price cuts were larger than expected, according to a Reuters poll among Asian refiners.
“The OSPs to Asia are bearish, signaling softer demand and potentially higher supply,” Energy Aspects analyst Virendra Chauhan said.
The decline in crude futures added to falls on Friday after a weaker than expected US jobs report indicated a patchy economic recovery that could mean slower fuel demand during a resurgent pandemic.
Losses were capped by concerns that US supply would remain limited in the wake of Hurricane Ida.
