Oil prices were mixed on Tuesday in quiet trade as some investors scooped up bargains following the recent losses while growing fears over slower demand after Saudi Arabia’s sharp cuts to crude contract prices for Asia weighed on sentiment.
Brent crude futures for November rose 31 cents, or 0.4%, to $72.53 a barrel by 0452 GMT, after falling 39 cents on Monday. U.S. West Texas Intermediate crude for October was at $69.14 a barrel, down 15 cents, or 0.2%, from Friday’s close, with no settlement price for Monday due to Labor Day holiday in the United States.
Demand woes grew after state oil group Saudi Aramco notified customers that it will cut October official selling prices (OSPs) for all crude grades sold to Asia by at least $1 a barrel.
The deep price cuts, a sign that consumption in the world’s top-importing region remains tepid, come as lockdowns across Asia to combat the delta variant of the coronavirus have clouded the economic outlook.
Brent crude futures for November rose 31 cents, or 0.4%, to $72.53 a barrel by 0452 GMT, after falling 39 cents on Monday. Markets are also contending with a decision by the OPEC+ to raise output by 400,000 barrels per day a month between August and December.
