Saudi Arabia cuts oil prices for Asia and Europe as demand slows

Saudi Arabia cuts oil prices for Asia and Europe as demand slows

Brent crude futures have slumped from almost $125 a barrel in June to less that $80, with prices dropping another 7.5% this week.





January 06, 2023 / 07:28 AM IST





There are several scenarios that might come into play both for the oil markets and India.(Representative Image)



Saudi Arabia cut oil prices for its main market of Asia and for Europe, signaling that demand remains sluggish as economies slow and coronavirus cases in China surge.

Brent crude futures have slumped from almost $125 a barrel in June to less that $80, with prices dropping another 7.5% this week. High interest rates and a strong dollar have weakened energy consumption among businesses in the US, Europe and China. Kristalina Georgieva, the head of the International Monetary Fund, this week said she expected one-third of the global economy to enter a recession this year.

State-controlled Saudi Aramco reduced prices for all types of crude that will be shipped to Asia in February. The company’s flagship Arab Light grade was lowered to $1.80 a barrel above the regional benchmark, $1.45 less than the price for this month. It’s now at its lowest level since November 2021.

The cut was roughly in line with