Shares of energy companies fell sharply alongside oil futures as supply-demand dynamics upstaged fears that the Israeli-Hamas conflict could be on the verge of spreading into a region-wide war.
"With all the problems in the Middle East and the potential for widening conflict, you would have expected oil price to increase," said J.D. Joyce, president of Houston financial advisory Joyce Wealth Management. "Instead, the Saudis lowered prices."
Saudi Aramco on Sunday said it would cut crude prices to all regions, including its largest market in Asia - a move that comes amid weaker global oil prices and increased production by producers outside the Organization of the Petroleum Exporting Countries. Oil futures closed in New York at around $71 a barrel.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
01-08-24 1819ET
