WTI Crude Oil just dropped to its lowest intraday price since 2011, sliding 1.78% lower after weeks of decline. The benchmark price for crude oil is down by nearly a quarter from the end of July.
Saudi Arabian action seems to have pushed the oil price further down: according to Reuters, Saudi Aramco, the state-owned oil giant, cut prices for US buyers, while increasing them for Asian and European customers.
The crude price tumbled well below $US80 per barrel, settling at around $US77.34 per barrel right now. Here’s how it’s slipped in just the last couple of days:
Saudi Aramco didn’t offer a precise explanation as to their price alterations, but John Kilduff at Again Capital LLC told Bloomberg that they’re just trying to keep their place in the sector intact: “The Saudi move speaks to them wanting to preserve market share in the US, where it has slipped recently… It looks like the Saudis are comfortable with prices and demand.”
They might well be happy with the falling price, but other oil-producing countries definitely won’t be. The rouble is going through the floor again, and Venezuela, Iran and Russia are particularly exposed to the falling price.
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