Oil Mixed Amid Slower Demand Weighing On Sentiment

Oil prices were mixed on Tuesday as some investors scooped up bargains following recent losses, while Saudi Arabia’s sharp cuts in crude contract prices for Asia sparked fears over slower demand and weighed on sentiment.

Brent crude futures for November rose 35 cents, or 0.5%, to $72.57 a barrel by 0654 GMT, after falling 39 cents on Monday.

U.S. West Texas Intermediate crude for October was at $69.16 a barrel, down 13 cents, or 0.2%, from Friday’s close, with no settlement price for Monday due to Labor Day holiday in the United States.

State oil group Saudi Aramco notified customers on Sunday that it will cut October official selling prices (OSPs) for all crude grades sold to Asia by at least $1 a barrel.

The deep price cuts, a sign that consumption in the world’s top-importing region remains tepid, come as lockdowns across Asia have clouded the economic outlook.

Markets are also contending with a decision by the Organization of the Petroleum Exporting Countries and their allies, a grouping known as OPEC+, to raise output by 400,000 barrels per day a month between August and December.

“Brent came back as investors adjusted positions, but market sentiment remained weak due to slow demand in Asia and in the United States amid a resurgence of the pandemic,” said Tetsu Emori, CEO of Emori Fund Management Inc.