Brent crude dropped to the lowest level in more than two years after Saudi Arabia cut its November official selling prices to all areas. West Texas Intermediate crude slipped to a 17-month low.
Both grades retreated after the Saudi Arabian Oil Co. trimmed its benchmark Arab Light prices to customers in Asia, Europe and the U.S. WTI rose as much as 2 percent earlier as the U.S. Energy Information Administration said the country’s crude supplies slipped 1.36 million barrels to 356.6 million.
“The Saudi price cut is a sign that they won’t be cutting back production further and may be setting up for a market share battle,” John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund that focuses on energy, said by phone. “One bullish inventory report isn’t going to be enough to support the market when the Saudis are taking these actions.”