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Fuel prices fell 8-9 cents per gallon on Nov. 19 as crude dropped more than $2.50 from the prior close.
The selloff followed European lockdown measures, with Austria reimplementing restrictions, and China signaling openness to releasing strategic reserves. Mansfield noted the inventory report showed tight supply.
Expectations of weaker European demand and possible reserve releases point to lower crude and diesel prices, reducing fuel and transport costs for feed producers in the near term.
mansfield.energyAlan ApthorpNov 19, 2021After 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.
After 51 past bearish geopolitics events, ULSD / Diesel moved a median -2.4% over 5 sessions (37% higher; middle half -8.2% to +3.9%), and -2.3% 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.
Same-day report attributes the crude selloff of over $2.50 to European lockdowns and China signaling a possible strategic reserve release, which would add supply.
Same-day account ties the crude drop of over $2.50 to European lockdowns and China signaling openness to releasing strategic reserves, which implies lower demand and added supply.
