# Oil prices stumble, hit June lows on Saudi price cut, COVID flare-ups

> Oil futures settled sharply lower as Brent fell below $40 a barrel for the first time since June and US crude dropped nearly 8%. The decline followed Saudi Arabia's cut to its October selling prices and rising COVID-19 cases in several countries. Labor Day weekend also marked the end of the US summer driving season.

- Date: 2020-09-08 · published 2020-09-08T12:00:00.000Z
- Category: trade · region Global · magnitude medium
- Page: https://feedsoft.ai/events/7472-oil-prices-stumble-hit-june-lows-on-saudi-price-cut-covid-flare-ups
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md)

## Why it matters

Lower Saudi Asian pricing and weaker demand signals reduce crude's cost outlook and pressure energy-linked feed inputs such as diesel and freight. Softer crude generally weighs on biofuel economics and feedstock values.

## Read by commodity

- WTI: bearish ▼
- BRENT: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| BRENT | 2020-09-08 | 1 | -6.0% | -3.6 | Same-day report of the sharp selloff driven by Saudi October price cuts, COVID flare-ups and the end of the driving season, which is a demand-sentiment mechanism. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2020-09-07 | [Oil falls after Saudi cuts prices, China slows imports](https://feedsoft.ai/events/7475-oil-falls-after-saudi-cuts-prices-china-slows-imports.md) | -6.2% | -1.4% |
| WTI | 2019-05-31 | [Crude oil prices tumble to 3-month low \| Fox Business](https://feedsoft.ai/events/9890-crude-oil-prices-tumble-to-3-month-low-fox-business.md) | -6.9% | +4.9% |
| WTI | 2019-05-24 | [MARKET WATCH: Oil prices tumble after US-China news \| Oil & Gas Journal](https://feedsoft.ai/events/9796-market-watch-oil-prices-tumble-after-us-china-news-oil-and-gas-journal.md) | -2.1% | -1.6% |
| WTI | 2019-08-02 | [MARKET WATCH: NYMEX oil prices tumble on US-China relations \| Oil & Gas Journal](https://feedsoft.ai/events/8498-market-watch-nymex-oil-prices-tumble-on-us-china-relations-oil-and-gas-journal.md) | -2.2% | +5.5% |
| WTI | 2025-04-03 | [Palm opens lower on weaker rival oils, crude oil prices](https://feedsoft.ai/events/9626-palm-opens-lower-on-weaker-rival-oils-crude-oil-prices.md) | -13.1% | -16.5% |
| BRENT | 2020-09-07 | [Oil falls after Saudi cuts prices, China slows imports](https://feedsoft.ai/events/7475-oil-falls-after-saudi-cuts-prices-china-slows-imports.md) | -6.1% | -7.7% |
| BRENT | 2019-05-31 | [Crude oil prices tumble to 3-month low \| Fox Business](https://feedsoft.ai/events/9890-crude-oil-prices-tumble-to-3-month-low-fox-business.md) | -8.8% | -2.2% |
| BRENT | 2019-05-24 | [MARKET WATCH: Oil prices tumble after US-China news \| Oil & Gas Journal](https://feedsoft.ai/events/9796-market-watch-oil-prices-tumble-after-us-china-news-oil-and-gas-journal.md) | -3.6% | -3.6% |

## Sources

- aljazeera.com: https://www.aljazeera.com/economy/2020/9/8/oil-prices-touch-june-lows-on-saudi-price-cut-covid-19-flare-ups
- reuters.com: https://www.reuters.com/article/us-global-oil/oil-slides-over-3-to-lowest-since-june-on-demand-fears-idUSKBN25Z0BE/

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