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US crude oil prices crashed as much as 34% intraday to a four-year low of $27.34 a barrel as traders braced for Saudi Arabia to flood the market. WTI settled down nearly 26% at $31.13, while Brent closed down 24% at $33.36, both their worst days since 1991.
A price war and weak demand point to sustained oversupply, bearish for crude and energy-linked feed input costs such as biofuel feedstocks.
cnn.comMatt EganMar 8, 2020After 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.
Brent closed down 24% in its worst day since 1991 as Saudi Arabia launched a price war, accounting for most of the 5-day decline.
It documents the crash in Brent and WTI as Saudi Arabia launched its price war, which is the move itself and its supply-driven cause.
Documents the crash as Saudi Arabia launched its price war, with Brent closing down about 24% and traders bracing for a market flood; its dating to March 8 is likely a weekend or timezone artifact.
The worst crude daily drop since 1991 intensified energy-linked selling across vegetable oils.
