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Oil drops more than $1 after Saudi price cuts, demand optimism fades

Brent crude was at $41.75 a barrel, down 91 cents or 2.1% by 0000 GMT, after it earlier slid to $41.51, its lowest since July 30.

September 07, 2020 / 08:42 PM IST

Oil prices dropped more than $1 a barrel on Monday, hitting their lowest since July, after Saudi Arabia made the deepest monthly price cuts for supply to Asia in five months as optimism about demand recovery cooled amid the coronavirus pandemic.

Brent crude was at $41.75 a barrel, down 91 cents or 2.1% by 0000 GMT, after it earlier slid to $41.51, its lowest since July 30.

U.S. West Texas Intermediate crude skidded 91 cents, or 2.3%, to $38.86 a barrel. Front-month prices initially hit a low of $38.55 a barrel, a level not seen since July 10.

The world remained awash with crude and fuel supplies despite OPEC+ supply cuts and government efforts to stimulate the global economy and oil demand, forcing refiners to rein in output and producers to make deep price cuts again.