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

  • Angkor lifetime pass, special Siem Reap travel offers planned

    The Ministry of Tourism plans to introduce a convenient, single lifetime pass for foreign travellers to visit Angkor Archaeological Park and potentially other areas. The move is designed to stimulate tourism to the culturally rich province of Siem Reap as the start of the “Visit

  • Bosba: The first Khmer woman composer from UK’s Cambridge

    Bosba Panh is just 25 years old, but she’s already accomplished some impressive milestones for herself and the Kingdom. On July 24, she graduated with a Master’s degree from the University of Cambridge as the first Khmer woman composer and Khmer music graduate ever at

  • Pailin longan winery tries to break through to the big time

    Longan aren’t quite as glamorous as some fruits. They don’t have the star-power of mangos or generate the excitement of a pricey seasonal niche fruit like the pungent durian. Unlike bananas or oranges, which are known and loved everywhere, longan remains a decidedly

  • ‘Golden’ Angkor Wat likely due to natural phenomenon: ANA

    Pictures and video clips of the Angkor Wat temple, its spires seemingly coated in gold, have been shared tens of thousands of times on social media, prompting a sense of wonder among those who have seen them. Hong Sam Ath, who took the pictures and

  • Debt restructuring over, time to tackle rising NPL ratio

    The Cambodian banking system has just completed a 26-month debt restructuring exercise where scores of loan accounts were revised, classified and provisioned as the rate of non-performing loans inched up, sparking a slight credit risk unease Implemented in April 2020, the Covid-19 debt restructuring measures came

  • Recap of this year’s ASEAN FM meet and look ahead

    This year’s edition of the ASEAN Foreign Ministers’ Meeting (AMM) hosted by Cambodia comes against the backdrop of heightened global tensions and increasing rivalry between major powers that have been compared to the animosity of the Cold War era. The following is The Post’