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The IEA says the oil industry is facing an unprecedented shock from the coronavirus pandemic, with global demand falling sharply, especially in transport. Oil stocks are building fast and saturating storage, while OPEC+ restraints have ended and supply is rising.
Demand destruction plus a supply surge means crude prices are likely to stay depressed, weakening biofuel economics and energy-linked costs for feed production. Lower oil prices also dampen demand for corn-based ethanol and vegetable oil used in biodiesel.
iea.orgApr 1, 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.
