# Oil hits skids, drops 7% on worsening outlook for coronavirus in Europe

> Oil prices fell more than 7% on March 18, 2021, their biggest one-day drop since the previous summer, extending a fifth straight daily decline. The selloff followed rising COVID-19 cases in Europe and a strengthening U.S. dollar.

- Date: 2021-03-18 · published 2021-03-18T12:00:00.000Z
- Category: macro · region Global · magnitude medium
- Page: https://feedsoft.ai/events/6198-oil-hits-skids-drops-7-on-worsening-outlook-for-coronavirus-in-europe
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md), [ULSD / Diesel](https://feedsoft.ai/c/DIESEL.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Lower crude weakens the energy-linked cost base for feed and biofuel inputs and pulls down diesel and fertilizer costs over time. A stronger dollar also makes dollar-priced grains and meals less attractive to foreign buyers.

## Read by commodity

- DXY: bullish ▲
- WTI: bearish ▼
- BRENT: bearish ▼
- DIESEL: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| BRENT | 2021-03-18 | 1 | -8.3% | -5.4 | Directly describes the March 18 drop of over 7%, tied to rising European COVID cases (demand) and a stronger dollar. |
| BRENT | 2021-03-23 | 1 | -6.2% | -3.2 | Describes the roughly 7% drop in oil prices driven by rising European COVID cases and a stronger dollar. That is the same selloff, but it happened on March 18, five days before the 2021-03-23 move, so the date fit is imperfect. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2020-01-29 | [The Canadian Dollar Is Unprepared for Coronavirus Impact on Bank of Canada Outlook](https://feedsoft.ai/events/55307-the-canadian-dollar-is-unprepared-for-coronavirus-impact-on-bank-of-canada.md) | -7.1% | -8.8% |
| WTI | 2020-09-25 | [Oil prices down for the week on new coronavirus concerns](https://feedsoft.ai/events/51290-oil-prices-down-for-the-week-on-new-coronavirus-concerns.md) | -4.0% | +0.9% |
| WTI | 2020-02-25 | [Oil falls for fifth day on demand concerns as coronavirus spreads](https://feedsoft.ai/events/7111-oil-falls-for-fifth-day-on-demand-concerns-as-coronavirus-spreads.md) | -9.0% | -54.6% |
| WTI | 2020-03-13 | [U.S. ethanol industry 'bleeding' on oil collapse, coronavirus](https://feedsoft.ai/events/54132-u-s-ethanol-industry-bleeding-on-oil-collapse-coronavirus.md) | -20.3% | -27.5% |
| WTI | 2019-08-01 | [Oil drops sharply on Fed outlook, ample supply](https://feedsoft.ai/events/8496-oil-drops-sharply-on-fed-outlook-ample-supply.md) | -12.7% | -4.7% |
| BRENT | 2020-09-25 | [Oil prices down for the week on new coronavirus concerns](https://feedsoft.ai/events/51290-oil-prices-down-for-the-week-on-new-coronavirus-concerns.md) | -3.0% | +0.7% |
| BRENT | 2020-02-25 | [Oil falls for fifth day on demand concerns as coronavirus spreads](https://feedsoft.ai/events/7111-oil-falls-for-fifth-day-on-demand-concerns-as-coronavirus-spreads.md) | -7.6% | -55.2% |
| BRENT | 2019-08-01 | [Oil drops sharply on Fed outlook, ample supply](https://feedsoft.ai/events/8496-oil-drops-sharply-on-fed-outlook-ample-supply.md) | -13.9% | -6.4% |

## Sources

- business-standard.com: https://www.business-standard.com/article/markets/oil-hits-skids-drops-7-on-worsening-outlook-for-coronavirus-in-europe-121031900053_1.html
- reuters.com: https://www.reuters.com/article/business/oil-hits-skids-drops-7-on-worsening-outlook-for-coronavirus-in-europe-idUSKBN2BA05F/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.