Oil Rates dip more than $1 after Saudi Arabia propose cuts

After Saudi Arabia made the deepest monthly price cuts for supply to Asia in five months, oil prices in the international market dipped more than $1 amid the pandemic.

According to the details, Brent crude was at $41.75 a barrel, down 91 cents or 2.1%, after it earlier slid to $41.51, its lowest since July 30.

However U.S. West Texas Intermediate crude skidded 91 cents, or 2.3%, to $38.86 a barrel.

Front-month prices initially hit a low of $38.55 a barrel, a level not seen since July 10.

Despite OPEC+ supply cuts and government efforts to stimulate the global economy and oil demand, the world remained awash with crude and fuel supplies.

“With the Labour Day (holiday) in the U.S. officially marking the end of the summer driving season, investors are also facing up to the fact that demand has been lackluster, while inventories remain at elevated levels,” said analysts.