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Brent crude futures settled down $16.84, or 13.2%, to $111.14 a barrel, their biggest one-day decline since April 2020. U.S. crude fell $15.44, or 12.5%, to $108.70.
The drop followed signs that the UAE would support a larger OPEC+ output increase.
A credible plan to add OPEC+ supply eases the energy price spike that had pushed up diesel and biofuel-linked feedstock costs. Lower crude weakens the energy-driven support under vegetable oil and corn-based biofuel prices.
reuters.comShariq KhanMar 9, 2022After 210 past bearish policy events, Crude Oil (Brent) moved a median -0.9% over 5 sessions (48% higher; middle half -3.8% to +3.2%), and +0.2% over 20.
After 215 past bearish policy events, Crude Oil (WTI) moved a median +0.1% over 5 sessions (51% higher; middle half -4.4% to +3.3%), and +0.2% 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.
Directly reports Brent's 13% settlement drop on 9 March, driven by UAE signals of support for a larger OPEC+ output increase, which eased supply fears.
UAE backing a bigger OPEC+ output hike triggered Brent's largest one-day drop since April 2020 (-13%) on March 9, a supply-expectation shift that drove much of the 5-day decline.
Brent fell 13.2% on March 9 as the UAE backed a bigger OPEC+ output increase, easing supply fears and driving the largest single-day drop in the window.
The UAE's support for a larger OPEC+ output increase triggered the biggest one-day drop in two years, a supply-expectation shock.
