The United States Oil Fund USO is trading significantly lower Wednesday following reports Saudi Arabia may continue to cut crude oil prices.
What To Know: Saudi Arabia, the world's top oil exporter, is considering further cutting the price of its Arab Light crude.
According to four respondents surveyed by Reuters, the official selling price of its medium grade crude could be reduced by approximately $1.50 per barrel next month.
If the cuts are implemented, Arab Light crude will fall to prices not seen since late 2021.
"The near-term market outlook is dim. More Russian barrels are expected to flow to Asia, but demand is not picking up," one respondent reportedly told Reuters.
The SPDR S&P 500 SPY is positive for Wednesday's session, but it's being held back by oil names.
Some oil-related stocks lagging the broader market on Wednesday include Marathon Oil Corp MRO, Occidental Petroleum Corp OXY and Chevron Corp CVX.
Front month WTI Crude futures contracts were trading down 4.91% at $73.13 at last check, while Brent crude, the international benchmark, was hovering around $78.07.
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USO Price Action: The US Oil Fund is down 4.98% at $64.27 at time of publication, according to Benzinga Pro.
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