– Oil prices slightly lower due to concerns about demand, especially in Asia. Just such concerns prompted Saudi Arabia, il largest exporter in the world, to reduce their prices on Asian markets. WTI futures are down 0.58% to 68.87 dollars a barrel, while those on Brent drop 0.94% to 71.9 dollars a barrel.
“Riad said in October it will lower the selling prices of the entire range of petroleum productsi of at least a dollar a barrel, “said Neil Wilson, an analyst at Markets.com. The information was shared by Saudi Aramco in a financial document and took the market by surprise. less strong demand than expected and the will to maintain market share.
“The Saudis have cut the price in Asia more than expected,” he said Ole Hansen of Saxo Bank– “This obviously raises the question of whether they are looking for market share or if they see a weak demand situation that requires a lower price to stay competitive,” he added.
The factors in the field
The bearish sentiment has recently been added to the willingness of governments to release strategic reserves that reduce the need for supplies from the market. However, a significant portion of US production remains stuck in the Gulf of Mexico due toHurricane Ida–
“The Covid.19 variants risk weighing more than expected on the recovery in demand,” he warns Bjarne Schieldrop, analyst at Seb.
However, the Organization of the Petroleum Exporting Countries (OPEC) and its partners, an alliance in which Saudi Arabia is very influential, decided last week to increase production.
Investors are also monitoring the situation in the United States, where Hurricane Ida hit a significant portion of the production in the Gulf of Mexico and also many refineries.
The US draws on reserves
In any case, the US government has decided to use some of its strategic reserves to prevent a gasoline shortage in the middle of a weekend extended by a Labor Day vacation.
Last month, some Asian customers demanded less crude from Saudi Arabia due to the impact on demand for Delta variant of Covid.19– For October, Saudi official prices for cargoes bound for the United States, Northwestern Europe and the Mediterranean remained stable, indicating Riyadh’s intention to prioritize flows to Asia.
It remains difficult for analysts and traders to train a clear picture of the outlook for global demand due to the continued spread of the virus. Fuel consumption in the United States has risen to a record, European demand is on the rise as crude oil stocks in major storage centers such as Saldanha Bay in South Africa have declined, a sign that the pandemic.induced excess is rapidly dissipating.