Oil Dips, Saudi Excludes U.S from April Loading Price Cut
Oil prices slide in the global commodities market amidst uncertainties following a slowdown in China’s inflation slowdown and Saudi differential pricing. Brent crude decreased by 0.16%, trading at $70.08 per barrel, down from $70.19 at the close of the previous session. The US benchmark West Texas Intermediate fell by 0.19%, settling at $66.72 per barrel, compared to its prior session close of $66.85.
China’s latest inflation figures signaled weak domestic demand. The Consumer Price Index (CPI) dropped by 0.7% year-on-year in February, while the Producer Price Index (PPI) declined by 2.2%. Analysts warned that sluggish domestic demand poses a significant risk to China’s economy, potentially dampening the country’s appetite for crude oil.
Downward pressure on oil prices continued as US President Donald Trump imposed, then delayed, tariffs on key oil suppliers Canada and Mexico, while also raising taxes on Chinese goods.
These actions are expected to potentially slow economic growth and weaken energy demand, which could exert downward pressure on oil prices. The Saudis released their latest official selling prices for April loadings, which showed cuts across almost the board except for U.S which remained unchanged.
Saudi Arabia’s flagship Arab Light crude into Asia was cut by US$0.40 to US$3.50 per barrel over the benchmark amidst growing concern over the market balance with OPEC+ supply set to increase at a moment of increasing uncertainty over demand.
The Organization of Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, will proceed with oil output hikes from April. However, Russian Deputy Prime Minister Alexander Novak emphasized that if market imbalances arise, they are ready to adjust their approach accordingly.
Adding to supply concerns, the US continues its ‘maximum pressure’ policy against Iran. US National Security Advisor Michael Waltz informed Iraqi Prime Minister Mohammed Shia’ al-Sudani in a phone call Sunday that Washington has decided to end a crucial sanctions waiver allowing Iraq to purchase gas and electricity from Iran.
Waltz described the decision as part of Trump’s ‘maximum pressure’ strategy aimed at reducing Iraq’s dependence on Iranian energy sources, according to the Iraqi Prime Minister’s press office.
The US has imposed sanctions on Iran for years, citing concerns about its nuclear program and other factors. The measures have intensified under the Trump administration, with Washington aiming to severely reduce Iran’s oil exports and economic output. #Oil Dips, Saudi Excludes U.S from April Loading Price Cut CBN Opens FX Window for BDC to Stock up at NFEM Rate
