NEW YORK: Oil futures settled sharply lower on Tuesday, with Brent crude sinking below $40 a barrel for the first time since June.
US crude fell nearly 8 per cent after Saudi Arabia cut its October selling prices and Covid-19 cases rebounded in several countries. The rebound in illnesses could weaken the global economic recovery and sap fuel demand.
US West Texas Intermediate (WTI) crude settled down $3.01 or 7.6 per cent, at $36.76, earlier hitting lows not seen since 15 June. Brent crude fell $2.23, or 5.3 per cent, to $39.78 a barrel.
On Monday, crude fell after Saudi Aramco cut the October official selling prices for its Arab Light oil, a sign of softening demand. “The Saudi price cuts announced Sunday made WTI unattractive to Asian buyers,” said Colorado-based energy analyst Phil Verleger of PK Verleger LLC.