Saudi Aramco cuts price for key crude grade to Asia
OPEC output rises by 70,000 bpd in Dec Reuters survey
Force majeure declared at Libyan oilfield

LONDON, Jan 8 Reuters Oil prices fell by more than 2 on Monday on sharp price cuts by top exporter Saudi Arabia and a rise in OPEC output, offsetting supply concerns generated by escalating geopolitical tension in the Middle East.

Brent crude slid 2.2, or 1.74, to 77.02 a barrel by 1024 GMT while U.S. West Texas Intermediate crude futures shed 2.3, or 1.73, to 72.08.

Both contracts climbed more than 2 in the first week of 2024 on intensifying geopolitical risk in the Middle East after attacks by Yemeni Houthis on ships in the Red Sea.

On Sunday rising supply and competition with rival producers prompted Saudi Arabia to cut the February official selling price OSP of its flagship Arab Light crude to Asia to the lowest level in 27 months.

Oil watchers are rightly questioning that the kingdom39;s cut is not only aimed at quelling interference from nonOPEC supply but from its very own cartel membership, said John Evans, of oil broker PVM.

A Reuters survey on Friday found that OPEC oil output rose in December as increases in Iraq, Angola and Nigeria offset continuing cuts by Saudi Arabia and other members of the wider OPEC alliance.

The boost came ahead of further OPEC cuts in 2024 and Angola39;s exit from OPEC, which are set to lower January output and market share.

If we were just to focus on the fundamentals,…