Saudi Cuts Asia Oil Price Fourth Month, Brent Futures Head for Weekly Drop
Saudi Arabia reduced its Arab Light official selling price to Asia for a fourth consecutive month, signaling growing caution over oversupply risks. U.S. crude futures extended their decline on Friday, heading for their first weekly loss in weeks as concerns over Middle East supply disruptions eased ahead of U.S.-Iran nuclear talks.
1. Saudi Arabia Extends Price Cut
Saudi Arabia’s state oil firm lowered the official selling price of its flagship Arab Light crude to Asian buyers for the fourth straight month. The ongoing reductions reflect Riyadh’s strategy to protect market share amid concerns that global supply will outpace demand this quarter.
2. Brent and WTI Futures Pull Back
Brent and U.S. West Texas Intermediate crude futures fell during early Asian trading, with U.S. crude on track for its first weekly drop in several weeks. Traders cited easing supply risk perceptions after recent diplomatic developments and a lack of new disruption triggers in key producing regions.
3. US-Iran Nuclear Talks Weigh on Sentiment
Attention has shifted to U.S.-Iran nuclear negotiations in Oman, where investors hope for progress that could alleviate Middle East geopolitical tensions. Improved prospects for an agreement have reduced the premium on oil prices previously built on fears of supply disruption.