# Oil plunges in Asia as producers start price war

> Oil prices crashed in Asia by around 30% on Monday as Saudi Arabia cut its official selling prices after Russia refused deep OPEC-backed production cuts. Brent fell to a low of $31.02 a barrel, near a 16-year low.

- Date: 2020-03-09 · published 2020-03-09T12:00:00.000Z
- Category: geopolitics · region Asia · magnitude high
- Page: https://feedsoft.ai/events/4422-oil-plunges-in-asia-as-producers-start-price-war
- Commodities: [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

Expectations that producers will pump more to gain market share signal an oversupplied market, bearish for crude and energy-linked feed input values.

## Read by commodity

- SBO: bearish ▼
- WTI: bearish ▼
- BRENT: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| BRENT | 2020-03-09 | 5 | -30.3% | -10.0 | Brent crashed about 30% in Asia on March 9 after Saudi Arabia cut official selling prices following Russia's refusal to cut output. |
| BRENT | 2020-03-09 | 1 | -22.5% | -10.0 | Describes the Asian-session crash on March 9 as Saudi Arabia cut selling prices after Russia refused deep cuts, directly matching the move's timing and cause. |
| BRENT | 2020-03-12 | 5 | -39.5% | -12.1 | Brent fell to about $31 in Asia as producers started a price war after Russia refused deep cuts, directly reflecting the supply shock. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| BRENT | 2020-04-01 | [Oil Plunges Most Since 1991 After Producers Embark on Price War](https://feedsoft.ai/events/54280-oil-plunges-most-since-1991-after-producers-embark-on-price-war.md) | +44.4% | +9.2% |
| BRENT | 2024-08-30 | [Oil Prices Drop as OPEC+ Considers Increasing Production in October \| OilPrice.com](https://feedsoft.ai/events/28974-oil-prices-drop-as-opec-considers-increasing-production-in-october-oilprice-com.md) | -8.9% | -10.4% |
| BRENT | 2020-03-09 | [Oil crash: why Saudi Arabia has started a global crude price war](https://feedsoft.ai/events/54286-oil-crash-why-saudi-arabia-has-started-a-global-crude-price-war.md) | -27.3% | -36.6% |
| BRENT | 2020-03-16 | [Chart of the Month \| A Price War Erupts in the Oil Market](https://feedsoft.ai/events/7664-chart-of-the-month-a-price-war-erupts-in-the-oil-market.md) | -20.5% | -23.3% |
| BRENT | 2020-03-09 | [U.S. shale producers rush to cut spending, output as oil prices tank](https://feedsoft.ai/events/4425-u-s-shale-producers-rush-to-cut-spending-output-as-oil-prices-tank.md) | -27.3% | -36.6% |
| WTI | 2020-04-01 | [Oil Plunges Most Since 1991 After Producers Embark on Price War](https://feedsoft.ai/events/54280-oil-plunges-most-since-1991-after-producers-embark-on-price-war.md) | +15.0% | -6.8% |
| WTI | 2024-08-30 | [Oil Prices Drop as OPEC+ Considers Increasing Production in October \| OilPrice.com](https://feedsoft.ai/events/28974-oil-prices-drop-as-opec-considers-increasing-production-in-october-oilprice-com.md) | -10.8% | -10.5% |
| WTI | 2020-03-09 | [Oil crash: why Saudi Arabia has started a global crude price war](https://feedsoft.ai/events/54286-oil-crash-why-saudi-arabia-has-started-a-global-crude-price-war.md) | -23.0% | -31.2% |

## Sources

- bbc.com: https://www.bbc.com/news/business-51796748

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