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Crude futures fell more than 10% on November 26, 2021, the biggest single-day drop of the year, with WTI dropping below $70 a barrel for the first time since September. Several countries moved to ban flights from African nations after the new B.1.1.529 variant was announced.
Investors fear the variant could derail the economic reopening and reduce fuel demand, weighing on crude and refined product prices.
spglobal.comNov 26, 2021After 32 past bearish disease events, Crude Oil (WTI) moved a median -5.2% over 5 sessions (13% higher; middle half -15.0% to -2.4%), and -5.7% over 20.
After 26 past bearish disease events, Crude Oil (Brent) moved a median -6.0% over 5 sessions (15% higher; middle half -13.3% to -2.0%), and -6.8% over 20.
After 13 past bearish disease events, ULSD / Diesel moved a median -5.1% over 5 sessions (38% higher; middle half -6.3% to +1.2%), and -6.1% 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.
The crude futures plunge of over 10% on Omicron fears and flight bans cut expected fuel demand and fed directly into the ULSD sell-off on the same day.
Describes crude futures falling more than 10% on Omicron concerns and flight bans, a demand and sentiment shock that explains the move.
Crude fell more than 10% on Omicron fears, a demand-sentiment shock that dragged down diesel, which is refined from crude.
Crude futures plunged over 10% on Omicron concerns and flight bans, driving the core of the weekly drop.
Confirms the 10%+ drop on Nov 26 on flight bans tied to the new variant, a demand-sentiment shock.
