# Oil tumbles 9% on recession demand destruction fears

> Oil fell about 9% on Tuesday, its biggest daily drop since March, as fears of a global recession and COVID lockdowns in China grew. WTI crude was among the benchmarks that slid sharply.

- Date: 2022-07-05 · published 2022-07-05T12:00:00.000Z
- Category: macro · region Global · magnitude medium
- Page: https://feedsoft.ai/events/12612-oil-tumbles-9-on-recession-demand-destruction-fears
- 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)

## Why it matters

Expectations of weaker energy demand lower diesel and crude costs, which eases feed transport and processing costs but signals softer broader commodity demand.

## Read by commodity

- WTI: bearish ▼
- BRENT: bearish ▼
- DIESEL: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| WTI | 2022-07-05 | 1 | -5.7% | -3.3 | Reports the oil plunge on July 5, the biggest daily drop since March, driven by global recession and China lockdown fears (demand destruction). |
| DIESEL | 2022-07-06 | 5 | -17.6% | -3.2 | Oil's biggest daily drop since March on recession and China lockdown demand fears directly drove the diesel sell-off. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2022-07-05 | [Oil tumbles as much as 10%, breaks below $100 as recession fears mount](https://feedsoft.ai/events/11251-oil-tumbles-as-much-as-10-breaks-below-100-as-recession-fears-mount.md) | -3.9% | -12.8% |
| WTI | 2022-07-06 | [Oil slides 2% to 12-week low on fears of global recession](https://feedsoft.ai/events/12613-oil-slides-2-to-12-week-low-on-fears-of-global-recession.md) | -3.8% | -4.6% |
| WTI | 2020-02-28 | [Palm oil heads for worst week in 11 years on demand destruction \| The Star](https://feedsoft.ai/events/5815-palm-oil-heads-for-worst-week-in-11-years-on-demand-destruction-the-star.md) | -2.6% | -61.0% |
| WTI | 2022-07-08 | [Oil rises 2% but posts weekly loss on recession fears](https://feedsoft.ai/events/12617-oil-rises-2-but-posts-weekly-loss-on-recession-fears.md) | -6.6% | -13.1% |
| WTI | 2025-04-04 | [Oil falls to near 4-year low amid recession fears, OPEC+ production hikes](https://feedsoft.ai/events/7295-oil-falls-to-near-4-year-low-amid-recession-fears-opec-production-hikes.md) | -10.2% | -12.0% |
| BRENT | 2022-07-05 | [Oil tumbles as much as 10%, breaks below $100 as recession fears mount](https://feedsoft.ai/events/11251-oil-tumbles-as-much-as-10-breaks-below-100-as-recession-fears-mount.md) | -4.9% | -11.7% |
| BRENT | 2022-07-06 | [Oil slides 2% to 12-week low on fears of global recession](https://feedsoft.ai/events/12613-oil-slides-2-to-12-week-low-on-fears-of-global-recession.md) | -3.2% | -2.9% |
| BRENT | 2020-02-28 | [Palm oil heads for worst week in 11 years on demand destruction \| The Star](https://feedsoft.ai/events/5815-palm-oil-heads-for-worst-week-in-11-years-on-demand-destruction-the-star.md) | -3.0% | -52.3% |

## Sources

- reuters.com: https://www.reuters.com/business/energy/brent-up-strike-norway-threatens-disrupt-oil-gas-output-2022-07-05/

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