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Brent crude futures jumped a record $12 a barrel in early trading on Monday after a devastating attack on Saudi Arabia, before settling just above $69. It was the biggest one-day percentage gain since the contract began trading in 1988.
Saudi officials downplayed prospects for a rapid recovery of production capacity.
A sustained loss of Saudi output tightens global crude supply, lifting energy costs for feed producers through diesel, fertilizer and processing expenses. Elevated crude can also support biofuel-linked demand for vegetable oils and corn.
bloomberg.comSheela TobbenSep 15, 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.
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.
Confirms the record Brent jump of $12 and the largest percentage gain since 1988 on the Saudi supply cut.
Describes the record Brent gain on the Saudi supply shock.
