Oil Extends Slide on Saudi Price Cut 

Oil Extends Slide on Saudi Price Cut 

West Texas Intermediate (WTI) on Monday dropped to the lowest level in more than two years after Saudi Arabia reduced the cost of its oil to US customers in the face of soaring North American output, Bloomberg said in a report.
Futures tumbled 2.2 percent in New York. Saudi Arabian Oil Co. cut prices for all grades to the US, the company said Monday in an e-mailed statement. The state-owned producer, known as Saudi Aramco, will sell Arab Light to clients in Asia for 10 cents less than Middle East benchmarks, down from a November discount of $1.05. US crude imports from Saudi Arabia fell to a four-year low last month. “The Saudi move speaks to them wanting to preserve market share in the US, where it has slipped recently,” John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund that focuses on energy said. “It looks like the Saudis are comfortable with prices and demand.”
WTI for December delivery fell $1.76 to close at $78.78 a barrel on the New York Mercantile Exchange. It was the lowest settlement since June 28, 2012. Prices lost 12 percent last month, the most since May 2012, and are down 20 percent this year.
The volume of all futures traded was 9.7 percent above the 100-day average for the time of day. Brent for December settlement declined as much $1.27, or 1.5 percent, to $83.51 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude traded at a premium of $5.96 to WTI. The spread widened for a fourth day to close at $6 yesterday.

  Saudi Prices
Saudi Arabia, OPEC’s largest producer, reduced the premium of Arab Light to US Gulf Coast benchmarks by 45 cents a barrel to the lowest level this year.
Discounts for Medium and Heavy grades were widened for a fourth month, according to Saudi Aramco, the state oil company.
OPEC, responsible for about 40 percent of the world’s crude supply, is scheduled to discuss output policy at a Nov. 27 meeting in Vienna. Its 12 members are producing more than their collective target of 30 million barrels a day, which has been maintained since January 2012.

Short URL : http://goo.gl/npx00A

You can also read ...

Libya Oilfield Halt Raises Crude Prices
Libya’s oil exports from the Mellitah terminal will be...
Russia’s energy giant Gazprom and five financial investors are already financing the project.
The Nord Stream 2 project will begin the process of attracting...
Maduro Promises to Recover Oil Decline
Venezuelan President Nicolas Maduro promised on Saturday to...
US Shale Investors Await Oil Payoff
US oil production has topped 10 million barrels per day,...
Almost 1,118 km of pipelines have so far been laid in Sistan-Baluchestan Province.
In lines with efforts to provide the country's far-flung and...
SP Phase 14 Platform Sets record
The first flare stack of South Pars Gas Field's Phase 14 in...
Tehran Peak Power Demand Increases by  1,000 mw
Peak electricity consumption in the capital Tehran has...
Trilateral MoU to  Build Solar Plant
Post Bank of Iran has signed a trilateral memorandum of...