The Energy Report: Oil Taking It Easy – Investing.com

The Energy Report: Oil Taking It Easy – Investing.com

is taking it easy and easing off a bit after reports that Saudi Arabia will lower the selling price of oil to Asia by about one dollar a barrel. The Reuters survey says that the producer is expected to cut official selling prices (OSPs) of all grades by more than $1.00 in February from the previous month, dropping prices back to their lowest levels in three to four months. That raised some demand concerns but at the same time, has a seasonal element to it as well. It looks like the Saudis want to maintain market share ahead of Chinese maintenance. This is a reverse of a recent price increase that the Saudis had imposed.

The move overshadowed a very supportive American Petroleum Institute report that showed a decent 3.09 million barrel crude oil supply draw but also a surprise decrease in gasoline supply. That draw probably indicates that the data that showed that gasoline demand was faltering was wrong. The API also reported a 716,00 drop in distillates.