Brent crude dropped below $100 a barrel on Tuesday after Saudi Arabia unexpectedly cut its official selling prices for Asian buyers. The slide came alongside a planned G7 release of 100 million barrels of oil and diesel meant to ease supply pressure tied to the Iran conflict.
Brent slips further below $100
Brent crude, the global benchmark, fell as low as $99.38 a barrel before trading at $99.54, down 0.8%. US light crude oil fell further, dropping 1.2% to $88.34 a barrel.
The declines extend a retreat already visible earlier in the session, when Brent traded 1.4% lower at $98.85 a barrel.
Saudi Arabia widens its discount
Saudi Arabia unexpectedly cut its oil prices for sale to Asia in November to six-year lows, while raising prices for northwest Europe and the Mediterranean, according to Reuters. The kingdom set its November Arab Light official selling price to Asia at $5 a barrel below the average of Oman and Dubai prices, down $3 from the previous month. That discount is the widest since June 2020, Reuters data showed.
G7 moves to ease supply
On Friday, G7 countries announced they would release 100m barrels of oil and diesel to ease supply, as prices continue to be affected by Donald Trump's war on Iran. A spokesperson for the EU said the barrels would be allocated by the International Energy Agency, with some oil expected to reach markets within the next fortnight.
Even so, downstream fuel costs keep climbing. Home heating oil prices have risen 44% over the past year, compared with gains of 9% for petrol and 15% for diesel, prompting Dublin to address the issue in Tuesday's budget. Speaking on the South Lawn of the White House, Trump said he is always open to direct talks with Iran, even as tensions between Washington and Tehran remain high.
Source: The Guardian
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