Saudi Arabia to adjust oil prices in December

Saudi Arabia will reduce oil prices for Asia and the US in December, while increasing them for buyers in Western Europe and the Mediterranean region.

The price of the main oil grade which is supplied to Asia, Arab Light, will drop by $0.50 per barrel. As a result, it will be $1.70 more than the Oman/Dubai crude oil basket, Caliber.Az reports, citing Saudi Aramco state-owned company.

Prices for the US will decrease by $0.10 to $0.30 per barrel, while prices for Western Europe and the Mediterranean countries will rise by $0.30 per barrel.

The global oil market faced a setback on November 6, with crude oil prices dropping by 2.5 per cent, ending a five-day streak of gains. This decline was largely driven by a stronger US dollar, fueled by early indications that former President Donald Trump might be moving closer to securing a second term. 

A stronger dollar typically puts pressure on oil prices and other commodities, making them more costly for buyers using other currencies. As a result, Brent crude futures fell to $73.64 per barrel, down 2.5 per cent from the previous close of $75.53, while West Texas Intermediate (WTI) crude dropped to $70.22 per barrel, a 2.45 per cent decrease from the prior close of $71.99.

Crude prices have been highly volatile recently, influenced by a mix of factors, including OPEC+'s decision to delay its December production cuts for the second time, escalating tensions in the Middle East, speculation surrounding the upcoming US Federal Reserve meeting, and early signs of economic recovery in China, the world's largest oil importer.

By Naila Huseynova