Oil down more than 1% as Saudi price cuts offset Middle-East worries

Oil prices fall due to Saudi Arabia's price cuts and increased OPEC output. Geopolitical tension in the Middle East is a concern but has limited downside. Saudi Aramco slashes February OSPs, impacting weak demand. Rising supply and competition prompt Saudi Arabia to cut the February OSP of Arab Light crude. Geopolitical tensions in the Middle East counterbalance bearishness over softening global demand and rising inventories. The US sees an increase in oil drilling rigs, with JPMorgan forecasting the addition of 26 rigs this year, mainly in the Permian during the first half.