According to information published by the Financial Times, Saudi Arabia is ready to abandon the unofficial price mark of $100 for a barrel of oil Brent brands. The kingdom is going to increase production in order to regain lost positions.
Against the background of this news, the price of Brent crude oil fell below $ 72 per barrel, losing 2.3% on Wednesday. WTI futures also returned to below $70. As of 08:50 Moscow time, Brent contracts were trading down 1.92%, reaching two-week lows around $71.50.
Previously, the oil market was supported by reports of large-scale incentive measures in China. However, after the Saudi news, oil quotes lost momentum, and the sharp rise in the dollar exchange rate only increased pressure on black gold. The US dollar index again found support around 100.20 and rebounded, returning to the level of 101.00, which was due to increased demand for safe assets during the US trading session the day before. Additionally, the currency strengthened against the background of strong home sales figures in the United States.
At the same time, data from the US Department of Energy showed that commercial oil reserves in the country decreased by 4.5 million barrels over the previous week, reaching the lowest level since April 2022. Gasoline and distillate stocks, including diesel fuel, also showed a decrease.