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US WTI crude fell 3% to $63.01 on April 2 as geopolitical risk premiums from the prior week's rally faded during thin Easter-holiday trading. Rising Russian output and the US-China trade dispute also weighed, while Brent was down 2.3% near $67.75.
Fading geopolitical risk and rising supply from Russia reduce the energy price premium, lowering input costs for biofuel and feed-related processing while adding bearish pressure to crude.
cnbc.comTom DiChristopherApr 2, 2018After 255 past bearish geopolitics events, Crude Oil (WTI) moved a median -2.4% over 5 sessions (31% higher; middle half -7.0% to +1.7%), and -5.0% over 20.
After 250 past bearish geopolitics events, Crude Oil (Brent) moved a median -3.1% over 5 sessions (36% higher; middle half -7.9% to +1.6%), and -5.5% 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.
Fading geopolitical risk premium in thin Easter trading, along with rising Russian output and trade worries, drove Brent lower on April 2, adding to the slide.
