Brent Slips Further As Saudi Arabia Cuts Prices

Brent crude oil nearly fell below $94 on Thursday morning as investors continued to worry about growing supplies and a waning global economy.

The commodity traded at $94.08 at 6:28 GMT with the outcome of the European Central Bank’s policy meeting in focus. 

Weak data from the eurozone and China have kept a lid on crude prices as both of their sagging economies have had a negative impact on their energy needs.

Later in the day on Thursday, the ECB is set to hold its monthly policy meeting, at which the bank will decide how to revive the region’s sputtering economy. Most are expecting the bank to unveil the details of an asset buying program, something that has been a point of contention in the region, with some policymakers calling for more structural reform before any extra cash is injected into the financial system.

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Growing supply from OPEC has also contributed to Brent’s recent price drop as Libya boosted its output in the wake of unrest and protests that closed most of its major oilfields for months.

The organization is set to hold a meeting in November at which its members will likely discuss a supply cut in order to bring prices back above $100, the figure most nations need in order to balance their budgets.

However, on Wednesday, Saudi Arabia surprised some by cutting oil prices for Asian customers in November. Reuters reported that Saudi Aramco is attempting to become the top supplier for rapidly developing  Asian economies  and lowered prices in order to gain market share.

The decision to slash prices suggested that the nation will continue to call for a constant output at what will likely be a tense meeting in November.