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US English

Saudi increases cost of oil to US and Asia

By Jenal Mehta

12:11, 6 December 2021

Men fixing gas pipes
US natural gas prices have dropped to a three-month low – Credit: Shutterstock

US natural gas prices have dropped to a three-month low, trading at around $3.75 per million British thermal units – levels last seen in mid-August.

The weather forecast for the next few weeks is expected to be warmer than average in the US due to the La Nina weather event, reducing the demand for heating. Meanwhile in Europe, Russian gas supplies remain steady, with no increase in LNG gas exports to Europe.

Saudi Aramco has raised oil prices on all exports leaving for the United States and Asia, despite low demand forecasts due to the new Omicron Covid variant.

The beginning of 2021 saw the company significantly reducing oil production to support oil prices but it has increased supplies since then, according to S&P Global Platts.

The Organization of the Petroleum Exporting Countries (OPEC) has decided to go ahead with a planned supply increase in January, despite the risk of falling demand.

The market appears to have taken the Saudi Aramco oil price increase decision as a positive indicator for demand, with Brent crude and US crude trading on a slight rebound, and prices hovering around $69.88 and $66.26 per barrel respectively.


23.02 Price
-3.350% 1D Chg, %
Long position overnight fee -0.0204%
Short position overnight fee 0.0122%
Overnight fee time 22:00 (UTC)
Spread 0.020

Natural Gas

2.52 Price
-0.450% 1D Chg, %
Long position overnight fee 0.0718%
Short position overnight fee -0.0937%
Overnight fee time 22:00 (UTC)
Spread 0.0050

Oil - Crude

71.41 Price
+2.320% 1D Chg, %
Long position overnight fee -0.0204%
Short position overnight fee -0.0015%
Overnight fee time 22:00 (UTC)
Spread 0.030

Oil - Brent

75.98 Price
+2.030% 1D Chg, %
Long position overnight fee -0.0174%
Short position overnight fee -0.0045%
Overnight fee time 22:00 (UTC)
Spread 0.045

However, these levels remain roughly 20% lower than the 13-year price peak seen in October.


Brent crude oil

  • Day range: $69.30 – $72.00
  • 52-week range: $48.07 – $86.70

US crude oil

  • Day range: $66.72 – $68.43
  • 52-week range: $44.95 – £83.83

US natural gas

  • Day range: $3.70 – $3.88
  • 52-week range: $2.26 – $6.47
Price changes Price changes – Credit:

Read more: Oil prices rally as fears over Omicron severity ease

Markets in this article

Oil - Brent
Brent Oil
75.983 USD
1.511 +2.030%
Oil - Crude
Crude Oil
71.410 USD
1.62 +2.320%
Natural Gas
Natural Gas
2.5235 USD
-0.0115 -0.450%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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