# Oil crash: why Saudi Arabia has started a global crude price war

> Oil prices fell as much as 30% after Saudi Arabia launched a price war against Russia, its former OPEC+ ally. Riyadh raised production and cut crude prices after Russia refused deeper output cuts, with Brent dropping to $31.02 and WTI to $27.71 at the lows.

- Date: 2020-03-09 · published 2020-03-09T12:00:00.000Z
- Category: geopolitics · region Global · magnitude high
- Page: https://feedsoft.ai/events/54286-oil-crash-why-saudi-arabia-has-started-a-global-crude-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), [Corn](https://feedsoft.ai/c/CORN.md)

## Why it matters

Saudi discounting and output increases create a lasting oversupply during a demand slump, pressuring crude and related energy markets. Weaker energy prices reduce biofuel feedstock demand and ethanol margins, bearish for vegetable oils and corn.

## Read by commodity

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

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| BRENT | 2020-03-09 | 5 | -30.3% | -10.0 | Saudi Arabia launched a price war, raising output and cutting prices, and Brent fell as much as 30% on March 9, directly driving the move. |
| BRENT | 2020-03-08 | 1 | -12.9% | -5.7 | It explains Saudi Arabia's higher output and lower prices after Russia refused cuts, which pushed Brent to the lows. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| BRENT | 2020-03-08 | [Oil prices crash by most since 1991 as Saudi Arabia launches price war \| CNN Business](https://feedsoft.ai/events/4426-oil-prices-crash-by-most-since-1991-as-saudi-arabia-launches-price-war-cnn.md) | -27.3% | -36.6% |
| BRENT | 2020-03-30 | [Oil falls amid Saudi Arabia-Russia price war, coronavirus hits demand](https://feedsoft.ai/events/5322-oil-falls-amid-saudi-arabia-russia-price-war-coronavirus-hits-demand.md) | +21.9% | -26.3% |
| BRENT | 2020-03-09 | [Oil plunges in Asia as producers start price war](https://feedsoft.ai/events/4422-oil-plunges-in-asia-as-producers-start-price-war.md) | -27.3% | -36.6% |
| BRENT | 2020-03-08 | [Oil price war between Saudi, Russia after failed OPEC deal](https://feedsoft.ai/events/54278-oil-price-war-between-saudi-russia-after-failed-opec-deal.md) | -27.3% | -36.6% |
| BRENT | 2020-03-08 | [Saudi Arabia slashes April oil selling prices as OPEC+ fails to extend output curbs](https://feedsoft.ai/events/4424-saudi-arabia-slashes-april-oil-selling-prices-as-opec-fails-to-extend-output.md) | -27.3% | -36.6% |
| WTI | 2020-03-08 | [Oil prices crash by most since 1991 as Saudi Arabia launches price war \| CNN Business](https://feedsoft.ai/events/4426-oil-prices-crash-by-most-since-1991-as-saudi-arabia-launches-price-war-cnn.md) | -23.0% | -31.2% |
| WTI | 2020-03-30 | [Oil falls amid Saudi Arabia-Russia price war, coronavirus hits demand](https://feedsoft.ai/events/5322-oil-falls-amid-saudi-arabia-russia-price-war-coronavirus-hits-demand.md) | +64.1% | -28.3% |
| WTI | 2020-03-09 | [Oil plunges in Asia as producers start price war](https://feedsoft.ai/events/4422-oil-plunges-in-asia-as-producers-start-price-war.md) | -23.0% | -31.2% |

## Sources

- ft.com: https://www.ft.com/content/59dcba56-61a2-11ea-b3f3-fe4680ea68b5?syn-25a6b1a6=1

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