- Crude oil prices collapsed, with Brent crude closing under USD40/bbl for the first time since June
- risk-off tone across markets
- stronger USD headwinds
- tone was set earlier this week after Saudi Aramco cut its prices to Asian refiners, suggesting demand is weak
- Bloomberg survey showed that only four out of ten Asian refiners would be subsequently trying to buy more Saudi crude
- Abu Dhabi National Oil Co also cut its prices on Tuesday
- US refiners are also cutting output, as the summer driving season ends and inventories remain high
- rising COVID-19 infections across the globe doesn’t bode well for demand in the short term
- futures markets widening in the contango for both Brent and WTI to their widest levels since May