On Monday, futures for Brent crude oil for March delivery fell to $77.77 per barrel during trading, UNN reports citing trading data.
According to Bloomberg, as of 9:11 a.m., the price of Brent crude oil futures was down 1.26%.
At the same time, the price of February futures for WTI crude oil fell to $72.77 per barrel, losing 1.41%.
Details
Oil prices fell by more than 1% on Monday amid sharp price cuts by leading exporter Saudi Arabia and rising OPEC production, which offset fears of escalating geopolitical tensions in the Middle East, Reuters reports.
Rising supply and competition with rival producers prompted Saudi Arabia on Sunday to cut the February official selling price (OSP) of its flagship Arab Light crude for delivery to Asia to the lowest level in 27 months.
Saudi Arabia cuts oil prices08.01.24, 05:35
"Saudi Aramco's cut in its February OSP reinforces rumors of weak demand," said Vandana Hari, founder of oil market analysis company Vanda Insights .
Addendum
Both brands gained more than 2% in the first week of 2024 after investors returned from vacation to focus on geopolitical risks in the Middle East following Yemeni Houthi attacks on ships in the Red Sea.
U.S. Secretary of State Anthony Blinken, who is in the Middle East this week, said that the conflict in Gaza could spread to the entire region if no concerted peace efforts are made.
Israeli Prime Minister Benjamin Netanyahu promised to continue the war until Hamas is eliminated.