According to Reuters, oil prices fell in global oil markets on Monday, continuing their downward trend after the Kingdom of Saudi Arabia slashed crude prices for Asia over the weekend, indicating ample supply in global markets.
Oil prices in November Brent crude futures contracts decreased 57 cents, or 0.8 percent, to $72.04 a barrel, lowering the global oil price index, the benchmark Brent, and the US broker during trading on Monday.
Falling oil prices for West Texas Intermediate
Oil prices for US West Texas Intermediate for the month of October fell 56 cents, or 0.8%, to $68.73 a barrel.
Oil giant Saudi Aramco notified customers in a statement on Sunday that it would reduce October prices for all types of crude sold to Asia, its largest buying region, by at least $1 a barrel.
A Reuters poll of Asian refiners indicated that the price cuts were larger than expected.
Saudi Arabia cuts prices of all types of crude oil for Asian customers
Saudi Arabia, the world’s largest oil supplier, dropped prices for all types of crude oil for Asian clients in October compared to September, but kept crude oil selling prices in Northwest Europe and the United States unchanged.
Fuel demand in Asia has been curtailed as a result of lockdowns across the area to battle the extremely contagious delta strain of the coronavirus.