Oil slides as Saudi price cuts counter Middle East worries

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Key Points

Saudi Arabia. and a rise in OPEC output, offsetting supply concerns generated by escalating geopolitical tension in the..

On Sunday rising supply and competition with rival producers prompted Saudi Arabia to cut the February official selling price (OSP) of its flagship Arab Light crude to Asia to the lowest level in 27 months...

A Reuters survey on Friday found that OPEC oil output rose in December as increases in Iraq, Angola and Nigeria offset continuing cuts by Saudi Arabia and other members of the wider OPEC+ alliance...

"If we were just to focus on the fundamentals, including higher inventories, higher OPEC/non-OPEC production and a lower than expected Saudi OSP, it would be impossible to be anything other than bearish on crude oil," said IG analyst Tony Sycamore...

"The Red Sea tensions are the only counterweight, albeit a relatively weak and intermittent one, to crude prices succumbing to bearishness over expectations of softening global demand and rising inventories," said Vandana Hari, founder of oil market analysis provider Vanda Insights...

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