Oil prices fall as Saudi Arabia cuts crude cost
Oil prices were lower on Monday morning with both Brent and US crude in the red.
It comes as Saudi Arabia cut its crude selling prices to customers in Asia, with Saudi Aramco lowering its flagship Arab Light price by $2 per barrel – the biggest price cut in 13 months. Saudi Aramco also cut all prices for February delivery to Northwest Europe, the Mediterranean and North America. IGTV’s Angela Barnes looks at the market reaction.
(AI Video Summary)
Saudi Arabia conducts largest oil price cut in over a year
The price of oil is dropping today because Saudi Arabia has decided to lower the prices of its oil for buyers in Asia. This is a big change because it's the largest price cut in over a year. Not only are prices being reduced for Asia, but they are also being reduced for delivery to Europe and North America.
Lower prices reflect worries about global economy
Looking at the price chart, we can see that the price of Brent crude has fallen by 1.23%, and it's now around $77 per barrel. Similarly, the price of US crude oil is down 1.25% and is trading at about $72 per barrel. These lower prices are causing concerns about the global economy, which is more important right now than any issues in the Red Sea or potential problems with oil supply in Libya.
In a nutshell, the price of oil is going down today for a few reasons. Saudi Arabia has decided to lower its prices for buyers in Asia, which is a big deal because it's the biggest price cut in over a year. Prices are also being reduced for buyers in Europe and North America. This has caused the price of Brent oil to drop by 1.23% to around $77 per barrel, and the price of US crude oil to fall by 1.25% to about $72 per barrel. It's worth noting that these lower prices reflect worries about the global economy, not just what's happening in specific regions.
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