Oil prices have experienced a deep on Monday, extending losses after the world’s top exporter Saudi Arabia slashed crude contract prices for Asia over the weekend, reflecting well-supplied global markets and concerns over the outlook for demand.

Brent crude futures for November fell 49 cents.

U.S. West Texas Intermediate crude for October was at $68.82 a barrel, down 47 cents, or 0.68%. Both contracts were down over $1 in earlier trade.

The price cuts were larger than expected, according to a Reuters poll of Asian refiners. 

“The cut in Saudi OSPs to Asia provided a brief downside pressure this morning, which the market is recovering from,” Tamas Varga at PVM Oil Associates said.

“The monthly EIA report (U.S. government data) due out Wednesday will be eagerly watched and in case demand estimates for the balance of this year and for 2022 remain solid the market could easily edge towards the high seen in July.”

Global oil supplies are increasing as the Organization of the Petroleum Exporting Countries and their allies, a grouping known as OPEC+, is raising output by 400,000 barrels per day each month between August and December.