Oil Prices Descend 8% amid Saudi Price Cut & COVID19 Flare-ups

09-09-2020


Oil futures closed sharply down on Tuesday as Brent crude declined below US$ 40 per barrel, hitting the lowest levels since last June. US crude inclined nearly 8% after Saudi Arabia made price cut on its October sales and following the flare-up of Covid19 in India, England, Spain and some other US states, where the pandemic outbreak is out of control since several months.
The increasing rate of coronavirus infections might weaken the recovery of the global economy and undermine the demand on fuel.
US WTX intermediate closed the session declining 7.6% (US$3.01) to settle at US$ 36.76 a barrel after it fell earlier to lows not seen since 15 June.
Brent also fell 5.3% (US$ 2.33) to reach US$ 39.78 on settlement. Both benchmark crude are below the trading ranges since August.
Brent fell for the 5th straight session to lose more than 10% of its value since last August.
 


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