Oil Hits Multi-Month Lows as Saudis Cut Prices
Markets are trading steepily lower this morning following a slew of bearish reports over the long weekend, sending crude oil to its lowest point since June. On Monday, Saudi Arabia lowered its official selling price for October Arab Light crude, a product that sets the tone for Middle Eastern producers and signals weak demand in Asia. China is already showing a slowdown in purchases, with product exports rising while crude imports slow. OPEC+ will meet later this month to discuss market trends and what actions are necessary to take, if any.
Markets are also nervous about the future of US demand. Labor Day marks the end of the US’s seasonal high demand period. In addition to the end of seasonal demand, Reuters reports an increase in infections over the Labor day weekend, with infections rising in 22 states. With US demand already set to decline based on seasonal patterns, concerns of pandemic-induced shutdowns are causing major market concerns.
In early trading today, crude prices are down. Crude is currently trading at $36.70, a loss of $3.07.
Fuel prices are down this morning. Diesel is trading at $1.0704, a loss of 8.1 cents. Gasoline is trading at $1.0990, a loss of 7.8 cents.
This article is part of Daily Market News & Insights
Tagged: Arab Light, Asia, coronavirus, demand
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