# Oil plunges 25%, hit by erupting Saudi-Russia oil price war

> Crude oil prices suffered their biggest daily rout in years, falling nearly 25% as the coronavirus spread amplified fears of a global recession. The slump triggered panic selling and heavy losses on Wall Street's main stock indexes.

- Date: 2020-03-09 · published 2020-03-09T12:00:00.000Z
- Category: macro · region Global · magnitude high
- Page: https://feedsoft.ai/events/4419-oil-plunges-25-hit-by-erupting-saudi-russia-oil-price-war
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md), [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

The collapse in crude prices lowers energy costs and reflects weakening fuel demand, which can pressure feed-related commodities and freight markets through lower biofuel and energy linkages.

## Read by commodity

- DXY: neutral
- SBO: bearish ▼
- WTI: bearish ▼
- CORN: bearish ▼
- BRENT: bearish ▼
- PALMOIL: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| SBO | 2020-03-11 | 5 | -10.1% | -4.4 | The roughly 25% crude oil crash on March 9 cut biodiesel/energy-linked demand for soybean oil and set off a broad risk-off selloff, directly pressuring soyoil. |
| BRENT | 2020-03-09 | 5 | -30.3% | -10.0 | Crude suffered its biggest daily rout in years, nearly 25%, as the Saudi-Russia price war combined with coronavirus recession fears. |
| BRENT | 2020-03-12 | 5 | -39.5% | -12.1 | The roughly 25% daily rout combined supply-war fears with coronavirus recession concerns, causing panic selling. |
| BRENT | 2020-03-09 | 1 | -22.5% | -10.0 | Describes the Saudi-Russia price war combined with coronavirus recession fears driving panic selling in crude on the day. |
| PALMOIL | 2020-03-11 | 5 | -8.7% | -3.4 | Crude's roughly 25% one-day plunge amplified recession fears and caused broad commodity selling, including palm. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| CORN | 2020-03-11 | [Ag Markets Feel Pinch As Oil Prices Plunge - ProAg](https://feedsoft.ai/events/54223-ag-markets-feel-pinch-as-oil-prices-plunge-proag.md) | -6.0% | -3.6% |
| CORN | 2017-05-18 | [Brazil's Scandal Hits Soybean Prices](https://feedsoft.ai/events/7584-brazil-s-scandal-hits-soybean-prices.md) | +0.7% | +1.3% |
| CORN | 2026-08-31 | [Fed Chief Warsh Puts Prices Over Jobs, Lifting Rate-Hike Odds to 57% - Seoul Economic Daily](https://feedsoft.ai/events/17812-fed-chief-warsh-puts-prices-over-jobs-lifting-rate-hike-odds-to-57-seoul.md) | -0.3% | +2.6% |
| CORN | 2024-12-19 | [Why Brazil’s currency is plunging](https://feedsoft.ai/events/27149-why-brazil-s-currency-is-plunging.md) | +2.0% | +7.4% |
| CORN | 2017-05-18 | [Plunge in Brazil’s Real Shows Risk of Chasing Big Returns](https://feedsoft.ai/events/71196-plunge-in-brazil-s-real-shows-risk-of-chasing-big-returns.md) | +0.7% | +1.3% |
| PALMOIL | 2020-03-11 | [Ag Markets Feel Pinch As Oil Prices Plunge - ProAg](https://feedsoft.ai/events/54223-ag-markets-feel-pinch-as-oil-prices-plunge-proag.md) | -3.6% | -5.9% |
| PALMOIL | 2020-04-30 | [Palm oil futures plunge](https://feedsoft.ai/events/11551-palm-oil-futures-plunge.md) | -10.2% | -3.6% |
| PALMOIL | 2024-11-25 | [Update of edible oil prices to November 2024 - PricePedia](https://feedsoft.ai/events/11133-update-of-edible-oil-prices-to-november-2024-pricepedia.md) | +0.0% | -2.3% |

## Sources

- ft.com: https://www.ft.com/content/59dcba56-61a2-11ea-b3f3-fe4680ea68b5?syn-25a6b1a6=1
- reuters.com: https://www.reuters.com/article/business/oil-plunges-25-hit-by-erupting-saudi-russia-oil-price-war-idUSKBN20V130/
- reuters.com: https://www.reuters.com/article/us-global-oil/oil-plunges-over-20-after-saudi-arabia-slashes-prices-on-opec-deal-collapse-idUSKBN20V131/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.