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Bloomberg reported that oil posted its biggest weekly decline since February as geopolitical risks in the Middle East eased. West Texas Intermediate settled near $78 a barrel, its lowest close since mid-March, while Hamas was studying a proposed temporary ceasefire.
Easing Middle East risk removes the war premium from crude, which lowers biofuel feedstock and ethanol input costs. Lower energy prices can soften demand for vegetable oils used in biodiesel.
bloomberg.comJulia Fanzeres, Alex LongleyMay 2, 2024After 255 past bearish geopolitics events, Crude Oil (WTI) moved a median -2.4% over 5 sessions (31% higher; middle half -7.0% to +1.7%), and -5.0% 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.
