Saudi Arabia Fights for Oil Market Share Amid Low Demand

The video discusses the recent drop in the official selling price of Saudi Arabian light crude to Asia, which is now $1.10 below the Asian benchmark rate. This drop is attributed to weak demand and refinery cuts in Asia, forcing Saudi Arabia to compete for market share. Joe Kusik from the Cusic Group provides insights into the rebalancing process, highlighting the high supply levels in the U.S. and the potential need for floating storage. The discussion also covers price targets, with concerns about breaking the $40 mark, which could lead to further price drops to $37.

What implications does floating storage have on oil prices?

What price levels are being monitored for potential market shifts?