Summary
[Institutional analysis: Crude oil futures expand the decline, the market expects Saudi price cuts will lead to more fierce competition]Crude oil continued its decline on Monday, after Saudi Arabia’s price cuts to Asian buyers increased the possibility of fierce competition among oil-producing countries. At the same time, The return of the new crown epidemic continues to cast a shadow over the demand outlook. Only a few days after the OPEC+ decision to maintain production increases, Saudi Arabia lowered its oil prices in Asia next month. This move caught traders by surprise. They believed that Saudi Arabia aims to intensify competition and retain market share. Ole Hansen, Head of Commodity Strategy at Saxo Bank, said, “Saudi Arabia’s price cuts in Asia exceeded expectations. Investors are speculating whether they are gaining market share or whether they have implemented price cuts in order to maintain competitiveness because they anticipate weak demand.” (Golden Ten Data)
Crude oil continued its downward trend on Monday. Prior to this, Saudi Arabia’s move to lower prices by Asian buyers increased the possibility of fierce competition among oil-producing countries. At the same time, the return of the new crown epidemic continued to cast a shadow on the demand outlook. Only a few days after the OPEC+ decision to maintain production increases, Saudi Arabia lowered its oil prices in Asia next month. This move caught traders by surprise. They believed that Saudi Arabia aims to intensify competition and retain market share.SaxoBankOle Hansen, Head of Commodity Strategy, said, “Saudi Arabia’s price cuts in Asia exceeded expectations. Investors are speculating whether they are gaining market share, or whether they have implemented price cuts in order to maintain competitiveness because they anticipate weak demand.”
(Source: Golden Ten Data)
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