Oil Prices Drop as Saudi Arabia Slashes Crude Prices

Investors Increase Short Bets on Brent and WTI Crude Oil Amid Market Uncertainty

Saudi Arabia has slashed its crude oil prices, leading to a significant increase in short bets on the price of Brent and WTI crude oil.
Major commodities funds are expected to start selling US crude futures contracts to rebalance as the new year gets underway.
Saudi Arabia's recent price cut could indicate that the kingdom sees lower crude demand or is potentially trying to counter the West's booming crude production by waging a 'market share war'.
Oil prices dropped over 3% on Monday, with Brent trading around $76 a barrel and West Texas Intermediate crude trading around $71 a barrel.
Despite geopolitical tensions in the Middle East, the overall oil market leanings remain bearish, pointing to prices in the region of $70-75 per barrel for the first half of 2024.