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Oil Extends Drop After Saudi Price Cuts Show Demand Concern

  • Aramco’s reduction for Asia signals fuel use there is wavering
  • WTI declines after losing 7.5% in worst week since June
A pressure gauge sits attached to crude oil pipework in an oilfield near Almetyevsk, Russia, on Sunday, Aug. 16, 2020.
Photographer: Andrey Rudakov/Bloomberg
Updated on

Oil extended its retreat below $40 a barrel after Saudi Arabia cut pricing for October crude sales as demand stuck below pre-Covid levels.

Futures in New York dropped after Saudi Aramco reduced its key Arab Light grade more than expected for shipments to Asia, a signal that fuel consumption in the largest oil-importing region is wavering. The company also lowered prices to the U.S. for the first time in six months.