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Oil prices plunged on January 22 as concern over coronavirus spread weighed on the market. Goldman Sachs estimated the outbreak could cut global oil demand by 260,000 barrels per day, mainly through lower jet fuel use.
A demand shock from the outbreak adds to an already oversupplied market, pressuring crude and distillate prices. Diesel's relative resilience limits the downside for fuel costs.
freightwaves.comJohn KingstonJan 22, 2020After 32 past bearish disease events, WTI moved a median -5.2% over 5 sessions (13% higher; middle half -15.0% to -2.4%), and -5.7% over 20.
After 26 past bearish disease events, BRENT moved a median -6.0% over 5 sessions (15% higher; middle half -13.3% to -2.0%), and -6.8% over 20.
After 13 past bearish disease events, DIESEL moved a median -5.1% over 5 sessions (38% higher; middle half -6.3% to +1.2%), and -6.1% 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.
Oil plunged on Jan 22 on virus concerns, with Goldman estimating a 260k b/d demand hit mainly in jet fuel, contributing to the 5-day decline.
Oil plunged Jan 22 on virus concerns, with Goldman estimating a 260k b/d demand loss, contributing to the 5-day drop.
