Oil fell more than $ 1 after Saudi price cuts, demand optimism faded

FILE PHOTO: The sun sets behind a crude oil pump jack on a drill pad in the Purian Basin on November 24, 2019 in Los Angeles, Texas, USA. REUTERS / Angus Mordant

SINGAPORE (Reuters) – Oil prices fell more than $ 1 a barrel on Monday, the lowest monthly price cut since July for the supply to Asia in five months, after the lowest monthly price cut since July, the coronavirus virus Optimism about improving demand amidst the epidemic of.

Brent crude LCOc1 was at $ 41.75 a barrel, down 91 cents, or 2.1% by 0000 GMT, before it slipped to $ 41.51, its lowest since July 30.

US West Texas Intermediate crude CLc1 skid 91 cents, or 2.3%, at $ 38.86 a barrel. Not seen since 10 months that front-month prices initially hit a low of $ 38.55 per barrel.

Despite OPEC + supply cuts and government efforts to stimulate the global economy and oil demand, the world was awakened with crude oil and fuel supplies to force production and producers to again cut deeper prices.

ANZ analysts said in a note, “At the end of the summer driving season with Labor Day (holiday) in the US, investors are officially facing concerns that demand has been declining, while inventory is at an elevated level. ”

Saudi Arabia, the world’s top oil exporter, cut October’s official selling price for Arabian light crude, which sells in Asia by the largest margin since May. Asia is the largest market in Saudi Arabia by region.

The Organization of Petroleum Exporting Countries (OPEC) and its affiliate Russia, a group known as OPEC +, increased production by 7.7 million barrels per day since August after global oil prices improved from global coronovirus-linked To downsize.

The improvement in oil prices has encouraged some American drillers to return to the wells.

According to a weekly report by Baker Hughes Co (), last week US energy firms added oil and natural gas leaks for the second time in the past three weeks.BKR.N) on Friday.

Reporting by Florence Tan; Editing by Kenneth Maxwell

Our standard:Thomson Reuters Trust Theory.

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