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Asian shares fell on March 9, 2020 as investors fled to bonds over the economic shock of the coronavirus. Oil plunged more than 20% after Saudi Arabia cut its official selling prices and signaled plans to raise output following the collapse of the OPEC+ supply cut deal with Russia.
Brent fell to about $35.88 a barrel and U.S. crude to about $32.51.
Lower crude prices weaken the energy-wide cost base and the link to biofuel and diesel demand, which can pressure soybean oil, corn and other biofuel-linked feed inputs. Cheaper diesel and freight also lower feed transport costs for buyers.
reuters.comWayne ColeMar 9, 2020After 565 past bearish macro events, Crude Oil (WTI) moved a median -1.4% over 5 sessions (41% higher; middle half -5.9% to +3.0%), and -0.5% over 20.
After 312 past bearish macro events, Crude Oil (Brent) moved a median -1.7% over 5 sessions (38% higher; middle half -5.4% to +2.3%), and -1.7% over 20.
After 79 past bearish macro events, ULSD / Diesel moved a median -1.0% over 5 sessions (39% higher; middle half -5.7% to +1.7%), and -1.5% 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.
Reports the March 9 plunge of over 20% from Saudi price cuts and planned output increases after the OPEC+ deal collapsed, amplified by coronavirus risk-off sentiment.
Oil plunged over 20% on March 9 after Saudi Arabia cut selling prices and signaled higher output following the OPEC+ collapse, with Brent near $35.88.
Oil fell more than 20% on Saudi price cuts and planned output increases after the OPEC+ deal collapsed, with coronavirus-driven risk-off sentiment amplifying the drop.
Reports of the March 9 oil plunge of over 20% after Saudi price cuts reflect the same shock and show how it fed through to petroleum products, though the event is dated just after the move window.
It links the oil plunge to Saudi price cuts and planned output increases after the OPEC+ collapse, with coronavirus risk-off adding to the selling.
