Oil Plunges After Saudi Arabia Cuts Oil Prices For February Amid “Persistent Weakness”
Oil is plunging this morning, sending WTI on the verge of sliding below $70…
…after Saudi Arabia reduced the price of its crude oil for February delivery for all buyers amid what Bloomberg dubbed “persistent weakness”, rather than just Asian ones as it has done before.
State producer Saudi Aramco reduced its flagship Arab Light price to Asia by $2 to $1.50 a barrel above the benchmark. That’s bigger than a $1.25 a barrel reduction estimated in a Bloomberg survey of refiners and traders.
Interestingly, Aramco also cut the price for North American buyers by the same amount, while in previous price adjustments it has cut these prices more modestly according to Oil Price. For European buyers, Aramco cut February prices by between $1.50 and $2 per barrel.
