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Crude drops as Saudi Arabia trims export prices

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Investing.com -

Investing.com - Crude futures fell on Thursday on news that Saudi Arabia trimmed the price of oil it exports to the U.S. and Saudi Arabia.

In the New York Mercantile Exchange, West Texas Intermediate crude oil futures for delivery in January traded down 1.66% at $66.26 a barrel during U.S. trading, up from a session low of $66.13 a barrel and off a high of $68.20 a barrel.

The January contract settled up 0.75% at $67.38 a barrel on Wednesday.

Support for the commodity was seen at $63.72 a barrel, Monday's low, and resistance at $73.56 a barrel, Friday's high.

Saudi Arabia's state-run oil company lowered official selling prices for its crude in January to the lowest in at least 14 years for buyers in the U.S. and Asia.

The move suggested that the kingdom is stepping up a battle for market share with cheaper U.S. shale oil after last week's OPEC decision to keep production quotas unchanged, giving oil prices room to slide lower.

Oil prices have taken a hit in recent months on supply concerns.

While OPEC has left price quotas unchanged, conflicts in the Mideast and Eastern Europe have not affected supply as once feared, while cooling economies in Europe and Asia have stoked concerns that global supply is outstripping demand.

Separately, on the ICE Futures Exchange in London, Brent oil futures for January delivery were down 1.29% at US$69.02 a barrel, while the spread between Brent and U.S. crude contracts stood at $2.76.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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