# Brent Crude Tumbles Below $40 in Wake of Souring Demand Outlook - Bloomberg

> Brent crude in London fell below $40 a barrel for the first time since late June, and New York futures also fell sharply. Both benchmarks reached their lowest levels in nearly three months. Markets cited stalling Asian demand, the end of the US summer driving season, and higher OPEC and allied supply.

- Date: 2020-09-07 · published 2020-09-07T12:00:00.000Z
- Category: macro · region Global · magnitude medium
- Page: https://feedsoft.ai/events/7473-brent-crude-tumbles-below-40-in-wake-of-souring-demand-outlook-bloomberg
- Commodities: [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md)

## Why it matters

Weaker demand and rising supply point to continued downward pressure on crude prices. Lower energy costs can ease input expenses for feed producers but also weaken biofuel margins.

## Read by commodity

- WTI: bearish ▼
- BRENT: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| BRENT | 2020-09-07 | 1 | -3.9% | -4.1 | Brent fell below $40 on stalling Asian demand, the end of the US driving season and higher OPEC+ supply, describing the sentiment behind the drop. |
| BRENT | 2020-09-08 | 1 | -6.0% | -3.6 | Brent fell below $40 on stalling Asian demand and higher OPEC supply, which set up the move. The date is ambiguous (Sept 7 was a US holiday), so it may describe the Sept 8 drop. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| BRENT | 2022-07-12 | [Brent crude settles below $100/bbl on higher dollar, weak demand outlook](https://feedsoft.ai/events/40661-brent-crude-settles-below-100-bbl-on-higher-dollar-weak-demand-outlook.md) | +0.7% | -9.8% |
| BRENT | 2020-03-29 | [Oil Crashes to 18-Year Low With Broken Market Drowning in Crude - Bloomberg](https://feedsoft.ai/events/5324-oil-crashes-to-18-year-low-with-broken-market-drowning-in-crude-bloomberg.md) | +21.9% | -26.3% |
| BRENT | 2019-07-01 | [Oil Plunges in Worst Reaction to OPEC Since 2014 on Demand Woes - Bloomberg](https://feedsoft.ai/events/58299-oil-plunges-in-worst-reaction-to-opec-since-2014-on-demand-woes-bloomberg.md) | -4.2% | -6.1% |
| BRENT | 2020-03-30 | [Crude oil futures drop as pandemic darkens demand outlook](https://feedsoft.ai/events/5321-crude-oil-futures-drop-as-pandemic-darkens-demand-outlook.md) | +21.9% | -26.3% |
| BRENT | 2024-09-10 | [Oil settles near 3-year low on weak demand outlook \| Reuters](https://feedsoft.ai/events/10169-oil-settles-near-3-year-low-on-weak-demand-outlook-reuters.md) | +1.7% | +12.8% |
| WTI | 2022-07-12 | [Brent crude settles below $100/bbl on higher dollar, weak demand outlook](https://feedsoft.ai/events/40661-brent-crude-settles-below-100-bbl-on-higher-dollar-weak-demand-outlook.md) | -1.5% | -12.2% |
| WTI | 2020-03-29 | [Oil Crashes to 18-Year Low With Broken Market Drowning in Crude - Bloomberg](https://feedsoft.ai/events/5324-oil-crashes-to-18-year-low-with-broken-market-drowning-in-crude-bloomberg.md) | +64.1% | -28.3% |
| WTI | 2019-07-01 | [Oil Plunges in Worst Reaction to OPEC Since 2014 on Demand Woes - Bloomberg](https://feedsoft.ai/events/58299-oil-plunges-in-worst-reaction-to-opec-since-2014-on-demand-woes-bloomberg.md) | -1.4% | -2.5% |

## Sources

- bloomberg.com: https://www.bloomberg.com/news/articles/2020-09-07/oil-extends-drop-after-saudi-price-cuts-highlight-demand-concern

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