# NYMEX Plunges on Fed Rates, Supply, Tariff Tweets

> Oil and refined products plunged on August 1 after the Fed cut rates by only 25 basis points, short of expected further cuts, and the dollar hit two-year highs. WTI closed at $53.95, down from $58.58. The Trump administration then announced a 10% tariff on an additional $300 billion of Chinese goods effective September 1.

- Date: 2019-08-01 · published 2019-08-01T12:00:00.000Z
- Category: trade · region US · magnitude high
- Page: https://feedsoft.ai/events/11292-nymex-plunges-on-fed-rates-supply-tariff-tweets
- 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), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

New tariffs on $300 billion of Chinese imports threaten global trade and demand, while a stronger dollar makes US-priced commodities more expensive abroad, both weighing on feed commodity and energy prices.

## Read by commodity

- DXY: bullish ▲
- 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 1 plunge in oil and refined products after the Fed's limited 25bp cut, a strong dollar and new 10% tariffs on Chinese goods was the main shock inside the 5-day window, hitting ULSD directly. |
| BRENT | 2019-08-07 | 5 | -14.1% | -3.3 | Adds the hawkish Fed cut and two-year-high dollar to the tariff shock, pressuring dollar-priced crude. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2019-08-02 | [Column: Oil plunges as U.S. tariff threat boosts probability of recession](https://feedsoft.ai/events/8494-column-oil-plunges-as-u-s-tariff-threat-boosts-probability-of-recession.md) | -2.2% | +5.5% |
| WTI | 2019-08-01 | [Oil plunges, down more than 6% after Trump adds tariffs on China](https://feedsoft.ai/events/8495-oil-plunges-down-more-than-6-after-trump-adds-tariffs-on-china.md) | -12.7% | -4.7% |
| WTI | 2019-06-03 | [Oil falls as trade fears offset expectations for prolonged supply cuts](https://feedsoft.ai/events/11308-oil-falls-as-trade-fears-offset-expectations-for-prolonged-supply-cuts.md) | +0.9% | +9.0% |
| WTI | 2019-05-23 | [Oil plummets, on track for biggest weekly drop in 2019](https://feedsoft.ai/events/6604-oil-plummets-on-track-for-biggest-weekly-drop-in-2019.md) | -4.2% | -12.5% |
| WTI | 2025-04-03 | [Crude Prices Collapse on Tariff Announcement - ADM Investor Services](https://feedsoft.ai/events/12524-crude-prices-collapse-on-tariff-announcement-adm-investor-services.md) | -13.1% | -16.5% |
| BRENT | 2019-08-02 | [Column: Oil plunges as U.S. tariff threat boosts probability of recession](https://feedsoft.ai/events/8494-column-oil-plunges-as-u-s-tariff-threat-boosts-probability-of-recession.md) | -7.9% | -1.4% |
| BRENT | 2019-08-01 | [Oil plunges, down more than 6% after Trump adds tariffs on China](https://feedsoft.ai/events/8495-oil-plunges-down-more-than-6-after-trump-adds-tariffs-on-china.md) | -13.9% | -6.4% |
| BRENT | 2019-06-03 | [Oil falls as trade fears offset expectations for prolonged supply cuts](https://feedsoft.ai/events/11308-oil-falls-as-trade-fears-offset-expectations-for-prolonged-supply-cuts.md) | -2.9% | +2.1% |

## Sources

- burkeoil.com: https://www.burkeoil.com/value-added-services/energy-market-updates/nymex-plunges-on-fed-rates-supply-tariff-tweets

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