Oil prices steady as geopolitical turmoil weighs
Oil prices steady as Syria unrest, Saudi crude price cut weigh
Oil prices steady as geopolitical turmoil weighs
Oil prices steadied after a second weekly loss as traders weighed the impact of larger-than-expected cuts in Saudi crude prices for Asia and the fallout from the Syrian regime’s ouster.
Brent crude futures were trading near $71 a barrel, while West Texas Intermediate crude was above $67. Saudi Aramco cut its January oil prices after the OPEC+ alliance delayed restarting shut-in production, reflecting a weak market outlook. Meanwhile, the fall of the Syrian government sent shockwaves through the Middle East, dealing a blow to key backers Russia and Iran.
Oil has been rangebound since mid-October, with positive factors such as geopolitical tensions in the Middle East and Ukraine weighing on weak Chinese demand and ample supply. With a supply surplus expected next year, there appears little scope for a significant increase in production by OPEC+.
Aramco has cut the price of its benchmark Arab Light crude to 90 cents a barrel above the regional benchmark for buyers in Asia, the lowest premium in four years. The company also cut prices for oil destined for northwest Europe and the Mediterranean, while keeping U.S. market prices unchanged.
In Syria, the collapse of Bashar al-Assad’s regime has created a power vacuum, with multiple factions vying for control, raising the prospect of further unrest and violence. These developments recall scenarios in Libya and Iraq, where uprisings toppled authoritarian rulers but left countries in deep chaos.
