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An explainer on how oil prices respond to supply, demand and geopolitical events, using Monday's spike as the example. Global oil prices rose about 20% intraday after an attack on a major Saudi facility, which cut millions of barrels of daily production.
Consumption is around 100 million barrels per day.
The article gives background on why a supply shock to Saudi output moves global crude prices quickly. For feed buyers it reinforces that energy input costs can swing sharply on geopolitical events.
abcnews.comCatherine ThorbeckeSep 16, 2019Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
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.
