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MUFG analysts said oil prices have become detached from the marginal cost of supply because of an extreme shortage, and that prices are rising to levels where demand destruction becomes prevalent. The comment came from MUFG's head of emerging markets research, Ehsan Khoman.
If high crude prices curb fuel and petrochemical demand, energy-linked commodity demand could weaken, though the forecast is a risk rather than a confirmed change. Feed buyers should watch whether softer energy demand pulls down diesel and input costs.
reuters.comMar 2, 2022After 565 past bearish macro events, WTI moved a median -1.4% over 5 sessions (41% higher; middle half -5.9% to +3.0%), and -0.5% over 20.
After 312 past bearish macro events, BRENT moved a median -1.7% over 5 sessions (38% higher; middle half -5.4% to +2.3%), and -1.7% over 20.
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.
