- Saudi cuts Oct prices for Asia by at least $1/bbl
- U.S. Gulf Coast oil industry struggles with Ida recovery
- U.S. oil rig count falls most since June 2020 -Baker Hughes
SINGAPORE, Sept 6 (Reuters) – Oil prices extended losses on Monday after the world’s top exporter Saudi Arabia slashed crude prices for Asia over the weekend, signalling that global markets are well supplied.
Brent crude futures for November fell 57 cents, or 0.8%, to $72.04 a barrel by 0101 GMT while U.S. West Texas Intermediate crude for October was at $68.73 a barrel, down 56 cents, or 0.8%.
State oil giant Saudi Aramco notified customers in a statement on Sunday that it will cut October prices for all crude grades sold to Asia, its biggest buying region, by at least $1 a barrel. The price cuts were larger than expected, according to a Reuters poll among Asian refiners. read more
The decline in crude futures added to falls on Friday after a weaker than expected U.S. jobs report indicated a patchy economic recovery that could mean slower fuel demand during a resurgent pandemic. read more
Losses were capped by concerns that U.S. supply would remain limited in the wake of Hurricane Ida.
The U.S. government is releasing crude from strategic petroleum reserves as production in the U.S. Gulf Coast struggled to recover. Some 1.7 million barrels of oil and 1.99 billion cubic feet natural gas output remained offline, government data released on Friday showed, while power shortages are preventing some refineries from resuming operations. read more
The hurricane also led U.S. energy firms to cut last week the number of oil and natural gas rigs operating for the first time in five weeks, data from Baker Hughes showed on Friday. The oil rig count alone fell the most since June 2020.
Reporting by Florence Tan; editing by Richard Pullin
Our Standards: The Thomson Reuters Trust Principles.
Read More: Oil extends losses after deep cuts to Saudi crude prices for Asia