Crude prices remain uncertain as Saudi Arabia decides to cut premium costs for orders from Asia.

Last week, crude traded from its lowest price of $ 67.1 and the highest at $ 70.57 a barrel. Earlier this week, crude oil traded slightly lower at between $ 68.22 and $ 69.44 a barrel.

Saudi Arabia, OPEC’s largest oil exporter, has slashed the premium cost of oil orders from Asia, according to a Reuters report released earlier this Monday and keeps premiums cost unchanged for oil orders from northwestern Europe and the United States, became a major factor in the fall in crude oil prices, as well as the expectation of strongly competition in the crude oil market among all OPEC oil exporters.

Saudi Arabia cut the premium cost for oil shipments to Asia in October to $ 1.70 a barrel, while the September premium cost was as high as $ 3.00. The $ 1.30 discount comes as a surprise to buyers from Asia, as they expect the premium cost to be reduced by just between 20 and 40 cents a barrel.

According to the 20th meeting of OPEC+ on September 1st, the supply of crude oil to the global market increased as OPEC and its allies maintained their position to increase their oil production chain by 400 000 barrels per day from August to the end of December 2021.

According to my technical analysis, the price of crude oil on Tuesday did not change significantly as the crude market opened at $ 68.80 per barrel and is trading in the high and low-price range of yesterday (Monday, September 06th 2021).

Technically, in the long term chart of oil has shown that prices are on uptrend, but according to the above fundamental factor has been created some uncertainty for the oil market, which has led to the trading of crude oil prices may be stagnant or volatile or slightly declining.

For this week, due to falling oil prices from fundamental, oil investors could trade between $ 70 and $ 67 a barrel.

Analyzed by: Mr. Nhim Kosol, Independent Analyst