- On Thursday, word broke that Saudi Arabia, the world’s largest petroleum exporter, might abandon its price objective in order to increase output caused oil prices to plummet, reversing earlier gains.
- As of 0740 GMT, U.S. West Texas Intermediate crude down US$1.83 cents, or 2.63%, to US$67.86 per barrel, while Brent crude futures were down US$1.89, or 2.57%, to US$71.57 a barrel.
- As it gets ready to boost output, Saudi Arabia is ready to give up on its unofficial price objective for crude oil, which is $100 per barrel, according to information obtained by the Financial Times on Thursday.
- “After the PBOC’s easing measures announced earlier this week, the news overnight of a potential return of Libyan supply, coupled with today’s announcement of a lowered Saudi price target due to an expected increase in supply, has taken the wind out of the crude oil market’s sails,” said Tony Sycamore, market analyst at IG.
- Meanwhile, Deputy Energy Minister Pavel Sorokin on Thursday said Russia does not want to flood the market with oil if there is no need.
- Top government officials in China, the world’s largest crude oil importer, pledged on Thursday to deploy “necessary fiscal spending” to meet this year’s economic growth target of roughly 5%, acknowledging new problems and raising market expectations for fresh stimulus on top of measures announced this week.