Logo of Phnom Penh Post newspaper Phnom Penh Post - Crude oil prices remain low as Saudi Arabia cut prices for Asian markets

Crude oil prices remain low as Saudi Arabia cut prices for Asian markets

Content image - Phnom Penh Post
Analysis by Golden FX Link Capital business manager Nhim Kosol

Crude oil prices remain low as Saudi Arabia cut prices for Asian markets

After trading at a high of $70.57 per barrel, crude oil price slipped to a low $67.1 last week. Prices have been slightly down since Monday after trading between $68.22 and $69.44 per barrel.

Crude oil prices dropped as Asian governments tightened lockdowns to cope with the highly infectious Delta variant that led to the reduction in fuel demand.

Dailyfx.com analyst Warren Venketas said on Tuesday that crude oil prices are not far away from pressure as “[…] state-owned Saudi Aramco cuts prices for the October shipment to Asia – excluding the US and Europe.

“The price per barrel or official selling price (OSP) was reduced from $1.70 to $1.30 surprising market expectations which forecasted a much smaller markdown.”

Oilprice.com’s Tsvetana Paraskova said on Tuesday that Saudi Arabia’s move to slash oil export prices to Asia in October “more than expected in a move seen as the world’s largest crude exporter trying to keep and boost its market share […].”

Reuters meanwhile reported on Monday that “global oil supplies are also increasing as the Organization of the Petroleum Exporting Countries and their allies, a grouping known as OPEC+, is raising output by 400,000 barrels per day a month between August and December.”

The increasing output of OPEC+ in such a period of time amid the lower consumption could convince investors to follow the trend.

As of Tuesday, the price of crude oil did not change significantly as the crude market opened at $68.80 per barrel.

Even though the crude oil price chart is forming a long-term uptrend outlook, the given fundamentals above could make its prices stable or further decline temporarily.

For this week’s trading recommendation, investors should consider trading crude oil between $67and $70 per barrel.

Content image - Phnom Penh Post

MOST VIEWED

  • Cambodia to waive quarantine requirements Nov 15, no PCR test required

    Prime Minister Hun Sen has decided to lift all quarantine requirements for fully vaccinated travellers and visitors – both Cambodians and foreign nationals – effective from November 15 onward. In a special message addressed to officials and relevant authorities on November 14, Hun Sen said this policy will enable

  • PM: No more quarantine for vaccinated travellers

    Cambodia is lifting all quarantine requirements for vaccinated inbound travellers entering Cambodia by air, waterway or land border checkpoints effective from November 15. Travellers will be required to take a rapid antigen test on arrival rather than waiting for the results of the lengthier polymerase chain

  • No payment required for travellers taking rapid Covid tests on arrival

    Ministry of Health officials said there would be no payment required for the rapid Covid-19 tests given to travellers who arrive in Cambodia from November 15 onwards after the quarantine requirement is lifted for fully vaccinated people. Health ministry spokeswoman Or Vandine told The Post on

  • General’s gun smuggling ring busted

    The Military Police sent six military officers to court on November 22 to face prosecution for possession of 105 illegal rifles and arms smuggling, while investigators say they are still hunting down additional accomplices. Sao Sokha, deputy commander of the Royal Cambodian Armed Forces and commander of

  • More Cambodians studying in US

    The number of Cambodian students studying at US colleges and universities in 2020-21 increased by 14.3 per cent over the previous year despite the Covid-19 pandemic, according to a recent US government report. The 2021 Open Doors report on International Educational Exchange showed that 848 Cambodian students studied

  • Cambodia, Thailand to discuss border reopening

    Cambodian authorities from provinces along the Cambodia-Thailand border will meet with Thai counterparts to discuss reopening border checkpoints to facilitate travel, transfer of products and cross-border trade between the two countries. Banteay Meanchey provincial deputy governor Ly Sary said on November 22 that the provincial administration