Brent loses nearly 1.5% after Saudi remarks

International benchmark Brent lost 1.5% on Monday on track for the first loss in six days away from two-week highs on profit-taking.

Prices slipped after remarks by Saudi energy minister on the readiness to raise or cut production according to market needs, while asserting Riyadh’s commitment to maintain stable and safe global supplies. 

Prices are also pressured by a stronger dollar against a basket of major rivals, making dollar-denominated commodities costlier to holders of other currencies. 

Brent Today

Brent fell 1.5% to $80.80 a barrel, with a session-high at $81.95, after rising 0.3% on Friday, the fifth profit in a row, hitting a two-week high at $82.41. 

Brent rallied 5.8% last week, the third weekly profit in the last month amid growing concerns about Middle East tensions, and expectations of slower US production growth this year. 

Saudi Remarks

Saudi energy minister Prince Abdulaziz bin Salman said in earlier remarks that OPEC’s role now is to monitor market movements and be prepared for any required bumps or cuts according to needs. 

A recent decision by Aramco to scrap plans to increase production capacity raised concerns about the future of demand, and speculation that Saudi Arabia is bearish on the future of oil consumption. 

However, Bin Salman said that Aramco is halting its expansion of its output capacity because of the energy transition, as Aramco is now becoming an energy company. 

The Dollar

The dollar index rose 0.15% on Monday against a basket of major rivals, pressuring commodities. 

The gains come as US 10-year treasury yields power up as well, as the odds of an early US interest rate cut this year fade.