Loading…
U.S. crude export demand jumped after the attack on Saudi facilities, with Brent's premium over U.S. crude widening to as much as $7.40 a barrel. The wider spread made U.S. crude-linked grades more attractive to buyers in Asia and Europe.
The move followed the biggest oil price jump in almost 30 years.
Stronger export demand pulls more U.S. crude abroad and tightens domestic supply, supporting WTI prices. Higher crude costs also lift energy and transport expenses for feed buyers.
reuters.comSep 16, 2019After 36 past bullish trade events, WTI moved a median +1.6% over 5 sessions (69% higher; middle half -2.0% to +4.5%), and +0.7% over 20.
After 12 past neutral trade events, BRENT moved a median +2.3% over 5 sessions (75% higher; middle half +0.2% to +4.6%), and +4.7% 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.
Brent's premium over US crude widened as the attack lifted Brent more, a trade-flow effect of the move.
