Brent Oil Drops Below $94 After Saudis Cut Prices

Brent crude dropped to the lowest level in more than two years after Saudi Arabia cut its November official selling prices to all areas. West Texas Intermediate crude slipped to a 17-month low.

Both grades retreated after the Saudi Arabian Oil Co. trimmed its benchmark Arab Light prices to customers in Asia, Europe and the U.S. WTI rose as much as 2 percent earlier as the U.S. Energy Information Administration said the country’s crude supplies slipped 1.36 million barrels to 356.6 million.

“The Saudi price cut is a sign that they won’t be cutting back production further and may be setting up for a market share battle,” John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund that focuses on energy, said by phone. “One bullish inventory report isn’t going to be enough to support the market when the Saudis are taking these actions.”

Bloomberg

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