TEMPO.CO, Jakarta - Analysts said that crude oil prices across Asia will continue to tumble in today's trading session, following Saudi Arabia’s decision to cut its' crude oil prices destined for Asian and the United States (US) market, according to an AFP report.
The prices of January contracts for the US benchmark - the West Texas Intermediate (WTI) - has dipped by 31 cents to trade at US$66,50 per barrel, while January contracts for Brent crude oils also tumbled by 38 cent to trade at US$69,26 per barrel.
"Saudi Arabia had recently decided to offer more price cuts for consumers in Asia and the US - this move may significantly impact trades throughout today and into the beginning of next week," said an analyst for Phillip Futures, Daniel Ang, in Singapore.
On Thursday, Saudi Arabia's oil corporation, Saudi Aramco, decided to offer discounts of up to US$1,90 per barrel from its’ December offering price for consumers in Asia. The state-owned corporation have also reduced its' prices by around 70 cents for US consumers.
"It's pretty obvious that they're fighting to maintain their market share," continued Ang to AFP.
Previously, Saudi Arabia - as Organization of Petroleum Exporting Countries' (OPEC) most influential member as well as its' largest exporter - have decided to maintain its' current oil production output despite glaring indications that global oil prices are suffering due to overabundant reserves of crude oil in the international commodities market.