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| Oil price hits two-year low after Saudi price cut | Oil price hits two-year low after Saudi price cut |
| (about 1 hour later) | |
| Global oil prices have fallen to their lowest level in more than two years after Saudi Arabia cut its official selling price. | Global oil prices have fallen to their lowest level in more than two years after Saudi Arabia cut its official selling price. |
| Concerns of oversupply after higher output in the US, together with forecasts of lower global demand by the International Energy Agency (IEA), are driving prices down. | Concerns of oversupply after higher output in the US, together with forecasts of lower global demand by the International Energy Agency (IEA), are driving prices down. |
| Brent crude fell by more than 1% to $93 a barrel, its lowest since June 2012. | Brent crude fell by more than 1% to $93 a barrel, its lowest since June 2012. |
| US light crude fell below $90 for the first time in 17 months. | US light crude fell below $90 for the first time in 17 months. |
| On Wednesday, Saudi Arabia announced it was reducing its selling price for oil in a move to protect its market share, analysts said. | On Wednesday, Saudi Arabia announced it was reducing its selling price for oil in a move to protect its market share, analysts said. |
| "This is a structural change in the oil market, with Saudi Arabia explicitly stating that they are willing to compete on price," said Bjarne Schieldrop, a commodities analyst at SEB. | "This is a structural change in the oil market, with Saudi Arabia explicitly stating that they are willing to compete on price," said Bjarne Schieldrop, a commodities analyst at SEB. |
| The drop in price comes at a time when the Organization of Petroleum Exporting Countries (Opec) and the US are increasing output. | The drop in price comes at a time when the Organization of Petroleum Exporting Countries (Opec) and the US are increasing output. |
| The extraction of shale oil in the US has increased the country's production of oil significantly - the IEA has forecast that the US will soon overtake Saudi Arabia and Russia to become the world's biggest oil producer. |