Oil prices back off as Saudi Arabia drops prices for Asia

Crude prices backed off on Monday as attentions turned to the next tussle for market share between major producers.

Saudi Arabia has, according to reports, has dropped crude prices for customers in Asia.

Arab light crude is being sold at a US$1.10 discount to the Asia benchmark, which is said to be the biggest drop in their sales price since November.

Experts highlight that it marks the latest stand-off between Middle East producers and the swing-producers in the burgeoning shale plays of the United States.

In London trading Brent crude was down 2.1% to US$42.60, while West Texas Intermediary futures fell 2.18% to US$40.70.