MercoPress. South Atlantic News Agency

Oil at its lowest point in more than two years as Saudis defend market share

Riyadh announced lower prices to hold onto market share, which it had been losing against a broader production increase by rivals in OPEC and elsewhere.

Price cuts by key exporter Saudi Arabia helped send global crude prices to their lowest point in more than two years Thursday before they recovered in late trade.

 Analysts said Riyadh had announced lower prices for the fourth straight month to hold onto market share, which it had been losing against a broader increase in production by rivals in OPEC and elsewhere.

In New York the price for the West Texas Intermediate benchmark for November delivery retreated to $88.18 -- touching a level last seen on April 23, 2013 -- before recovering to $91.01, for slight gain of 28 cents from Wednesday.

In London, Brent crude dropped to $91.55 a barrel, last hit in June 2012, but later rebounded to $93.42, for a loss of 74 cents.

Andy Lipow of Lipow Oil Associates pointed to data showing that OPEC as a whole increased crude production last month.

“At the same time, Saudi Arabia are trying to entice more buyers with lower prices as an attempt to maintain market share in light of the increasing supply from Libya, Russia, as well as Kurdistan,” he said.

The Saudis, meanwhile, are also reported to be cutting back production with the aim of slowly tightening up market supplies.