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Oil fell more than $1 a barrel as virus-related travel restrictions slashed global fuel demand. The IEA head said worldwide oil demand could drop by up to 20 million barrels per day.
WTI settled at $22.60 and Brent at $26.34, with both contracts down about 60% for the year.
The IEA's demand-loss estimate signals a deep and prolonged fuel demand shock that pushes crude prices lower. Lower energy costs ease feed transport and processing expenses, though broader economic weakness is a risk to livestock demand.
reuters.comLaila KearneyMar 26, 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.
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.
Mar 26 fall on demand destruction (IEA 20 mb/d warning) sets the starting price level and sentiment for the window.
