US Oil Update: Futures Hold Steady as Saudi Price Cuts Offset Demand Optimism

Crude oil futures were little changed on Monday as markets weighed Saudi Arabia's decision to cut crude prices for Asian buyers against OPEC+'s output hike, reinforcing concerns that global supplies could outpace demand. Front-month West Texas Intermediate crude futures eased 0.13% to $68.68 per barrel, while Brent futures slipped 0.14% to $72.08/bbl. On Monday, Saudi Arabia lowered August crude premiums, led by a significant $11 decline for Asian buyers. Aramco set its August official selling price for Arab Light crude to Asia at a $1.50/bbl discount to the Oman/Dubai average, down from last month's $9.50 premium. Gelber & Associates said ongoing US-Iran peace talks, along with Saudi Arabia lowering its official August selling prices to Asia, continue to cap any significant upward momentum. The price cuts followed OPEC+'s decision over the weekend to continue unwinding voluntary production cuts, adding to expectations that more barrels will enter the market in H2 2026. Seven OPEC+ countries, led by Saudi Arabia and Russia, agreed on Sunday to another modest increase in their oil production quotas for August, adding to the prospects of more supply as crude prices fall amid.