RIYADH: Oil prices edged lower early on Tuesday, coming off gains made the previous day as concerns about the global economic backdrop outweighed the supply worries raised when Saudi Arabia announced its biggest output cut in years.
Brent crude futures slipped 70 cents, or 0.91 percent, to $76.01 a barrel by 10:00 a.m. Saudi time, while US West Texas Intermediate crude fell 74 cents, or 1.03 percent, to $71.41 a barrel.
Brent gained as much as $2.60 on Monday and US crude as much as $3.30 after Saudi Arabia, the world’s top exporter, said at the weekend its output would drop by 1 million barrels per day to 9 million in July.
The benchmarks pulled back, though, to more modest gains by the end of the day.
Saudi Arabia raises July flagship crude price for Asia
Saudi Arabia has increased the price of its flagship crude Arab Light to Asian buyers in July to a six-month high.
The official selling price for July-loading Arab Light to Asia was increased by 45 cents a barrel from June to $3 a barrel over Oman/Dubai quotes, according to a statement issued by state oil giant Saudi Aramco.
Meanwhile, Russian crude oil continued flooding into Asia at steep discounts. In May, China and India brought in an all-time-high volume of Russian crude, according to preliminary assessments from ship trackers.
Saudi Arabia also raised the July OSPs of other grades to Asia, all by 45 cents from the June levels. For the second straight month, the price for Arab Extra Light is set lower than Arab Light, according to the price document, Reuters reported.
For other regions, the top oil exporter increased its July Arab Light OSP to northwest Europe by 90 cents to $3 a barrel above ICE Brent.
(With input from Reuters)