Loading…
Oil prices fell on Monday after Saudi Arabia made its deepest monthly cut to Asian supply prices in five months. Chinese crude imports also slowed in August, adding to uncertainty over demand.
Brent traded near $42 and WTI near $39 per barrel.
Saudi price cuts signal weaker Asian demand, and slower Chinese buying removes a key support for crude. Lower crude prices weigh on energy costs and biofuel feedstock values.
asiafinancial.comReutersSep 7, 2020After 56 past bearish trade events, Crude Oil (Brent) moved a median -5.6% over 5 sessions (20% higher; middle half -9.0% to -1.7%), and -4.5% over 20.
After 80 past bearish trade events, Crude Oil (WTI) moved a median -2.2% over 5 sessions (30% higher; middle half -6.9% to +0.8%), and -1.5% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Saudi Arabia's deepest monthly cut to Asian selling prices in five months and slower Chinese crude imports signaled weak demand, directly pressuring Brent on Sept 7.
The Saudi cut to Asian prices and slower Chinese imports signaled weak demand and were the catalyst for the following session's drop.
