- WTI price faces challenges as Saudi has cut prices of its Arab Light Crude to Asia.
- OPEC+ oil output increased by 70,000 bpd to reach 27.88M bpd in December – Reuters Survey
- Iraq, Angola, and Nigeria reported an uptick in their export shipments of Crude oil.
- US Secretary of State Antony Blinken has warned that the Gaza conflict can spread across the region without peace efforts.
The West Texas Intermediate (WTI) price retraces its recent gains, trading lower near $73.00 per barrel during the Asian session on Monday. The decline in Crude oil prices is attributed to a combination of factors, including price cuts by top exporter Saudi Arabia.
Additionally, a rise in Organization of the Petroleum Exporting Countries and its allies (OPEC+) output, which increased by 70,000 barrels per day (bpd) in December to reach 27.88M bpd, according to a Reuters survey, is contributing to the downward pressure on oil prices.
The survey results indicate that the most significant increases, amounting to 60,000 barrels per day (bpd), came from Iraq and Angola in December. Furthermore, Nigeria also reported an uptick in the shipment of crude oil abroad during the same period. This rise in oil output is counteracting the ongoing production cuts by Saudi Arabia and other members of the OPEC+ alliance.
The survey findings highlight that Saudi Arabia has indeed lowered its production slightly, bringing it below 9M bpd. Furthermore, the country has extended a voluntary 1M bpd output cut. These deliberate measures are part of Saudi Arabia's efforts to influence global oil prices
Adding to the dynamics, Saudi Arabia announced on Sunday a reduction in the February Official Selling Price (OSP) of its flagship Arab Light crude to Asia, marking the lowest level in 27 months.
The Iran-backed Houthis escalated supply concerns last week by launching two anti-ship ballistic missiles at a container ship in the southern Red Sea en route to Israel. This provocative action adds to the geopolitical tensions in the region, particularly around maritime routes.
US Secretary of State Antony Blinken has issued a warning regarding the Gaza conflict, stating that without concerted peace efforts, the conflict has the potential to spread across the region.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.