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.

 

Market Condition Report - Disclaimer
The information contained herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Furthermore, no responsibility is assumed for use of this material and no express or implied warranties or guarantees are made. This material and any view or comment expressed herein are provided for informational purposes only and should not be construed in any way as an inducement or recommendation to buy or sell products, commodity futures or options contracts.

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