Concerns over Saudi Arabia’s price cut in oil

Oil rises after Saudi Arabia price cut signals demand concerns Oil rose for a second session on Saudi Arabia’s crude price cuts and concerns about the demand outlook. Brent climbed to $79 a barrel and U.S. crude traded around $75, extending a modest recovery after a sell-off after OPEC+ signaled plans to restore supply to the market. But Saudi Aramco’s decision to cut all oil prices for Asia next month, for the first time since February, has raised concerns about demand strength at the world’s largest crude importer. Oil has been on a downtrend since early April amid a negative outlook for top importer China and easing geopolitical tensions. Supply from rivals and allies in the Organization of the Petroleum Exporting Countries has also increased. U.S. crude inventories rose by 1.23 million barrels last week, government data showed on Wednesday, adding to the bearish outlook. Gasoline inventories rose to their highest level since March for a second week. Despite the U.S. inventory increases, "the market has shown resilience," said Charu Chanana, analyst at Saxo Capital Markets in Singapore.