WTI oil fell nearly 8%, Brent oil dropped to 40 USD / barrel
Crude futures contracts plunged on Tuesday (September 8) to their lowest close since June 2020, unable to dispel concerns about crude demand due to the continued increase in shifts. Covid-19 infection globally, the end of summer vacation in the US with a report that Saudi Arabia plans to reduce oil prices in October, MarketWatch reported.
Ending session on Tuesday, WTI light sweet crude oil contract for October delivery on the Nymex slumped $ 3.01 (equivalent to 7.6%) to $ 36.76 / barrel.
Brent oil contract delivered in November on London floor lost 2.23 USD (equivalent to 5.3%) to 39.78 USD / barrel.
WTI and Brent both closed at their lowest levels since June 2020, data from the Dow Jones Market showed. Meanwhile, the difference between WTI and Brent oil contracts is the largest since August 20, 2020.
Brent came under pressure on Monday (September 7) after Saudi Arabia lowered its official oil prices to Asian buyers, analysts said, which is seen as a sign of demand is weak.
Many market sources told Platts in the last week of August that oil prices are expected to drop in Asia by 1-2 USD / barrel.
After record volume in June 2020, customs data showed that China’s crude oil imports in August averaged 11.23 million barrels a day, down from 12.13 million barrels in July 2020 and lower. This is much higher than the record of 12.99 million barrels in June 2020.
Oil prices also plummeted as the US summer vacation season, the period between Memorial Day and Labor Day, comes to an end, showing seasonal weakening gasoline demand.
Also in the session on Tuesday, the gas contract for October delivery fell 6.3% to $ 1.1028 / gallon. Contract for heating oil delivered in October fell 6.5% to $ 1,0768 / gallon.
Natural gas contracts for October delivery plunged 7.3% to $ 2.40 / MMBtu.