Oil prices slump further as Saudis increase sales
(MEBG ) - Oil prices slipped further downward, further evidence that Saudi Arabia pumping more oil into the market. Tanker brokers confirmed that there is an increase chartering from the Middle East, and there have been reports that Saudi Arabia’s Aramco is offering more crude for sale in Asia and the United States.
To date, however, Saudi Arabia has not issued any statement about the matter. This commentators say, is because it prefers not getting into a public debate with other Opec members. Opec, it should be noted, has thus far avoided making a decision to increase oil output.
Formerly, the other Opec producers have said they will wait to see whether prices for a basket of cartel-produced crude stay over $28 for 20 days before a decision can be taken to produce more oil. This appears unlikely with the basket at just $26.33 on Friday. Traders believe that they may dip closer to $25, which will satisfy both Saudi and U.S. interests.
London Brent blend futures slipped 22 cents to $27.32 a barrel and US light crude was down 28 cents at $28.29. The erosion of large premiums for bulk gasoline sales in the United States and Europe have helped drag prices lower. U.S. gasoline futures are at 89.5 cents a gallon, down from a peak of $1.09 in June. Gasoline on the Rotterdam barge market was valued at $282 a tone on Monday, having slumped more than $100 a tone at their peak at the end of June.