Global oil prices fell by more than one percent on Monday, January 8, after Saudi Arabia cut its crude oil prices to buyers on all its export destinations for February.
The price of Brent crude fell to 77.88 dollars a barrel, and West Texas Intermediate crude fell to 72.91 percent a barrel, Bloomberg reported.
This comes despite rising tensions in the Red Sea and supply disruptions in Libya.
On Sunday, January 7, Saudi Aramco reduced the official selling price of February-loading Arab Light to Asia by 2 dollars a barrel from January to 1.50 dollars a barrel over Oman/Dubai quotes.
This marks the largest price cut in 13 months and aligns with market expectations, as refiners demand competitive prices from Saudi Arabia compared to other Middle Eastern producers and Atlantic Basin arbitrage cargoes.
Global crude oil prices fell for the first time since 2020 in 2023 due to rising supplies and growth concerns, with demand expected to rise in 2024.
