Loading…
ING reported that Brent settled almost 3.4% lower to $83.44 a barrel after a bearish EIA report showed US commercial crude stocks rising 7.27 million barrels to about 461 million barrels. Gasoline inventories also rose while implied gasoline demand hit a seasonal low since 2020.
Rising US crude and weak gasoline demand point to softer energy-linked demand, reducing support for ethanol and biofuel feedstocks. The risk premium erosion lowers energy-linked input costs for feed ingredients.
think.ing.comWarren Patterson, Ewa MantheyMay 2, 2024After 129 past bearish report events, BRENT moved a median -1.3% over 5 sessions (45% higher; middle half -3.9% to +2.5%), and +0.4% over 20.
After 171 past bearish report events, WTI moved a median -1.5% over 5 sessions (37% higher; middle half -4.8% to +1.9%), 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.
It details the bearish EIA inventory report (crude and gasoline builds, weak gasoline demand) behind Brent's decline, but it is dated May 2 and may partly reflect the following day's settlement.
