Oil falls more than 4% as Saudi price cut heightens global demand worries

Oil prices fell over 4% on Monday as Saudi Arabia reduced its prices, causing concerns about oversupply and weakening demand. West Texas Intermediate futures for February dropped by $3.67, or 4.93%, to $70.17 a barrel, while Brent futures for March decreased by $3.44, or 4.37%, to $75.32 a barrel. The sell-off followed Saudi Aramco’s decision to cut the price of Arab Light Crude to Asian customers by $2 per barrel. Weakness in the market is attributed to high US crude production and softening demand in China, despite efforts by OPEC and its allies to cut production.