Saudi Price Cut Draws Questions Surrounding Demand

WTI & Brent sit ~$0.50 below their respective settlement levels, with the tech-driven equity market weakness applying some pressure, before the impact of that particular catalyst faded from extremes. Outside of the broader risk dynamic there were a couple of oil-specific stories to note:

• The weekend saw Saudi Arabia cut October oil shipment pricing to Asia and the U.S., drawing questions over broader crude demand. BBG flags that participants have noted that the price cuts of the benchmark Arab Light crude were larger than expected. The pricing details also revealed that Saudi cut pricing for lighter barrels to north west Europe and the Mediterranean.
• Elsewhere, Friday saw Russian Energy Minister Novak point to a relatively modest oil price recovery in 2021, looking for a $50-$55 per barrel price average throughout that calendar year, alongside volatile price swings.