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Oil markets completed their first full day of trading after drone attacks on Saudi processing facilities. Brent settled up $8.80 (14.61%) to $69.02 a barrel, WTI rose 12.8% to $62.90, and CME ULSD gained 20.6 cents to $2.0838 a gallon, the weakest of the group.
Prices closed near the day's highs, and Saudi Arabia had not yet announced when lost production would be restored.
Lost Saudi output of roughly half its production removes a large share of global crude supply, lifting crude and diesel costs for farm and transport users. Higher diesel raises harvest and feed-delivery costs and the fuel surcharges that flow into feed prices.
freightwaves.comJohn KingstonSep 16, 2019After 656 past bullish geopolitics events, Crude Oil (Brent) moved a median +1.9% over 5 sessions (63% higher; middle half -2.7% to +6.6%), and +0.7% over 20.
After 626 past bullish geopolitics events, Crude Oil (WTI) moved a median +2.1% over 5 sessions (62% higher; middle half -2.3% to +8.5%), and +1.6% over 20.
After 250 past bullish geopolitics events, ULSD / Diesel moved a median +1.7% over 5 sessions (58% higher; middle half -3.6% to +8.7%), and +0.9% 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.
Gives the Brent settlement (+14.6% to $69.02) and notes no restoration timeline, which sustained the supply fear.
Documents Brent's settlement gain after the Saudi supply loss.
