# The oil price war is on; what that means for buyers of diesel - FreightWaves

> Oil markets plunged after OPEC talks with Russia collapsed, and Saudi Arabia signaled a price war. Saudi Arabia planned to raise output above 10 million b/d and cut its official selling differential by $6/b, believed to be the largest cut ever. Analysts noted oil demand was falling because of the coronavirus slowdown.

- Date: 2020-03-09 · published 2020-03-09T12:00:00.000Z
- Category: geopolitics · region Global · magnitude high
- Page: https://feedsoft.ai/events/54330-the-oil-price-war-is-on-what-that-means-for-buyers-of-diesel-freightwaves
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md), [ULSD / Diesel](https://feedsoft.ai/c/DIESEL.md)

## Why it matters

Saudi output expansion and price cuts into a demand slump point to sharply lower crude and diesel prices. Cheaper diesel lowers trucking and farm fuel costs, though the price war adds volatility to energy-linked feed input costs.

## Read by commodity

- WTI: bearish ▼
- BRENT: bearish ▼
- DIESEL: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| BRENT | 2020-03-09 | 5 | -30.3% | -10.0 | Saudi Arabia planned output above 10 million b/d and the largest-ever cut to official selling differentials, a supply surge against falling demand. |
| DIESEL | 2020-03-08 | 1 | -8.4% | -4.1 | Describes Saudi plans to raise output above 10 million b/d and make record cuts to selling prices, plus weak coronavirus-hit demand, which directly pressures diesel prices; dated a day after the move. |
| BRENT | 2020-03-08 | 1 | -12.9% | -5.7 | It describes the Saudi plan to raise output above 10 million b/d and make a record cut to its selling differential, a supply factor behind the plunge, alongside weak coronavirus-hit demand. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2026-09-30 | [More oil out of the Gulf translating to lower prices - FreightWaves](https://feedsoft.ai/events/17654-more-oil-out-of-the-gulf-translating-to-lower-prices-freightwaves.md) | +0.1% | +8.9% |
| WTI | 2026-06-23 | [Benchmark diesel price falls below $5 per gallon - FreightWaves](https://feedsoft.ai/events/19007-benchmark-diesel-price-falls-below-5-per-gallon-freightwaves.md) | -7.8% | +8.3% |
| WTI | 2023-02-21 | [Diesel price down, but impact of Russian sanctions may be lifting rates overall - FreightWaves](https://feedsoft.ai/events/37498-diesel-price-down-but-impact-of-russian-sanctions-may-be-lifting-rates-overall.md) | -0.9% | -11.4% |
| WTI | 2024-04-17 | [Oil prices fall more than 3% as traders discount Iran-Israel war risk](https://feedsoft.ai/events/30931-oil-prices-fall-more-than-3-as-traders-discount-iran-israel-war-risk.md) | -2.3% | -7.9% |
| WTI | 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) | -35.6% | -29.5% |
| BRENT | 2024-08-19 | [No war for now brings another drop in benchmark diesel price - FreightWaves](https://feedsoft.ai/events/28989-no-war-for-now-brings-another-drop-in-benchmark-diesel-price-freightwaves.md) | -1.2% | -9.9% |
| BRENT | 2026-09-30 | [More oil out of the Gulf translating to lower prices - FreightWaves](https://feedsoft.ai/events/17654-more-oil-out-of-the-gulf-translating-to-lower-prices-freightwaves.md) | +3.9% | +9.5% |
| BRENT | 2024-04-22 | [Benchmark diesel price below $4 again as war-led rally fizzles - FreightWaves](https://feedsoft.ai/events/30909-benchmark-diesel-price-below-4-again-as-war-led-rally-fizzles-freightwaves.md) | +2.4% | -5.2% |

## Sources

- freightwaves.com: https://www.freightwaves.com/news/the-oil-price-war-is-on-what-that-means-for-buyers-of-diesel

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