2024.01.0808:59:00UTC+00Oil Prices Decline After Saudi Price Cuts

Oil prices fell more than 1 percent on Monday, as news of sharp price cuts by top exporter Saudi Arabia and output increases announced by OPEC offset concerns around the risk of escalation in the Middle East conflict.

Benchmark Brent crude futures fell 1.1 percent to $77.88 a barrel while WTI crude futures were down 1.2 percent at $72.97.

Top oil exporter Saudi Arabia on Sunday cut oil prices to Asian markets to their lowest level in 27 months amid competition from rival suppliers and concerns about supply overhang.

Saudi Aramco slashed the official selling price (OSP) for February-loading Arab Light to Asia by $2 a barrel from January to $1.50 a barrel over Oman/Dubai quotes.

Meanwhile, Reuters reported that output from the Organization of the Petroleum Exporting Countries, or OPEC, rose 70,000 barrels per day (bpd) in December to 27.88 million bpd.

Geopolitical tensions were also on the radar with U.S. Secretary of State Antony Blinken warning that the conflict in Gaza could "easily" spill over into a full-blown regional conflict.

Israel struck Hamas and Hezbollah terror facilities in Khan Yunis and Lebanon in overnight strikes, the Israel D?fense Forces said earlier today.