# Oil dives nearly 5% to seven-month low on surprise U.S. stock build, trade war

> Oil prices fell more than 4.5% on Wednesday to a seven-month low. The decline followed a surprise 2.4 million barrel build in U.S. crude stockpiles, versus an expected 2.8 million barrel draw, and worries that the escalating U.S.-China trade war will shrink demand.

- Date: 2019-08-07 · published 2019-08-07T12:00:00.000Z
- Category: market · region US · magnitude medium
- Page: https://feedsoft.ai/events/10824-oil-dives-nearly-5-to-seven-month-low-on-surprise-u-s-stock-build-trade-war
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md), [ULSD / Diesel](https://feedsoft.ai/c/DIESEL.md)

## Why it matters

A larger-than-expected inventory build signals weaker near-term crude demand and ample supply, while trade-war demand fears cut the outlook further, pressuring energy prices and related biofuel and feedstock values.

## Read by commodity

- WTI: bearish ▼
- BRENT: bearish ▼
- DIESEL: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| DIESEL | 2019-08-07 | 5 | -10.0% | -3.0 | Aug 7 oil fell nearly 5% to a seven-month low on a surprise US crude stock build and trade-war demand fears, driving the final leg of the ULSD decline. |
| BRENT | 2019-08-07 | 5 | -14.1% | -3.3 | Brent fell over 4.5% on Aug 7 to a seven-month low on a surprise US crude build and trade-war demand fears, contributing directly to the window's end. |

## Sources

- reuters.com: https://www.reuters.com/article/us-global-oil/oil-slumps-to-seven-month-low-on-trade-tensions-surprise-u-s-stock-build-idUSKCN1UX028/

---
Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.