Saudi pricing cuts offset Middle East concerns as oil prices decline.
Saudi pricing cuts offset Middle East concerns as oil prices decline. By Natalie Grover at 7:44 p.m. on January 8, 2024 Source reuters.com January 8, London (Reuters) - Sharp price cuts by Saudi Arabia, the world's largest oil exporter, and an increase in OPEC production countered supply worries brought on by the rising geopolitical unrest in the Middle East, causing oil prices to plummet by more than 2% on Monday. By 12:37 GMT, U.S. West Texas Intermediate crude futures had down 2.7%, or $2.01, to $71.8, while Brent crude had dropped 2.5%, or $1.99, to $76.77 a barrel. In the first week of 2024, both contracts increased by more than 2% due to growing geopolitical risk in the Middle East following attacks on ships in the Red Sea by the Yemeni Houthis. Saudi Arabia lowered its flagship Arab Light crude's February official selling price (OSP) to Asia to its lowest level in 27 months on Sunday due to incre