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US crude hit its lowest level since June 2023 on Friday, posting its worst week in nearly a year with an 8% weekly drop. OPEC+ delayed a planned 180,000 barrels per day production increase until December, but the market was not reassured about the global supply-demand balance as Chinese oil demand slowed.
The OPEC+ delay adds only modestly to tightness, while slowing Chinese crude demand and a large projected supply return keep prices under pressure. Weaker crude reduces biofuel feedstock support for vegetable oils and corn-based ethanol.
cnbc.comSpencer KimballSep 6, 2024After 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 28 past bearish geopolitics events, Soybean Oil moved a median -2.7% over 5 sessions (21% higher; middle half -8.3% to -0.7%), and -2.1% 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.
WTI's 8% weekly drop despite the OPEC+ delay shows demand and supply-balance worries dominated across benchmarks.
