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Oil Extends Losses as Saudi Price Cuts Raise Competition Stakes

  • Kingdom reduced price of flagship crude by more than expected
  • WTI futures fall 0.6% to below $69 a barrel; Brent also slips
Saudi Aramco's Connected Khurais Oil Field
Photographer: Maya Sidiqqui/Bloomberg
Updated on

Oil extended losses after Saudi Arabia cut crude prices for Asian buyers, raising the prospect of fierce competition among sellers as the resurgence of Covid-19 continues to cloud the demand outlook.

Futures in New York fell 0.6% to below $69 a barrel. The kingdom cut the price of its flagship crude for October just days after OPEC+ agreed to continue boosting production. Traders were caught off guard by the Saudi move, attributing it to factors including increased competition and a desire to retain market share.