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Brent crude fell roughly 6% on Wednesday, one of its largest single-day drops in years, after OPEC said supply fears should ease and Libya was on track to restore full output. UBS said the sell-off was out of step with low global spare capacity and declining Iranian output, and it kept its bullish outlook.
UBS's view that spare capacity is thin suggests prices could rebound, but this is a market commentary rather than a new supply event. Feed buyers should treat the outlook as a view rather than a confirmed price trend.
upi.comDaniel J. GraeberJul 12, 2018Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Describes the same-day drop as driven by OPEC saying supply fears should ease and Libya restoring output, confirming the supply-relief mechanism.
