WTI fell to an 11-month low of $73.82 and Brent dipped to $81.16 as protests spread across China against zero-COVID restrictions. Traders were also weighing a US move to license Chevron to resume oil production in Venezuela.
Sentiment in the oil market was described as negative.
Weaker Chinese demand prospects lower energy and diesel costs for feed buyers, but unrest in China adds uncertainty to demand for feed and meat.
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 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.
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.