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Brent settled down $5.11, or 5.6%, to $85.81 on Wednesday, its biggest one-day drop since August 2022. WTI fell 5.6% to $84.22 after nearing $100 the prior week.
Concerns over higher borrowing costs and slowing growth drove the sell-off, lowering energy prices and reducing support for biofuel-linked soybean oil and corn demand.
ft.comJamie Smyth, Jaren Kerr in New YorkOct 4, 2023After 565 past bearish macro events, Crude Oil (WTI) moved a median -1.4% over 5 sessions (41% higher; middle half -5.9% to +3.0%), and -0.5% over 20.
After 312 past bearish macro events, Crude Oil (Brent) moved a median -1.7% over 5 sessions (38% higher; middle half -5.4% to +2.3%), and -1.7% over 20.
After 40 past bearish macro events, Soybean Oil moved a median -0.8% over 5 sessions (45% higher; middle half -4.5% to +1.7%), and -1.5% 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.
Brent's 5.6% one-day drop on Oct 4 was the largest part of the 5-day decline, driven by weak demand signals.
Documents the Oct 4 plunge (Brent -$5.11 to $85.81) and its magnitude, confirming the move, though it offers limited causal detail.
The sharp crude oil selloff on Oct 4 weakened biofuel-linked demand sentiment for soybean oil, but the timing is earlier than the Oct 9 drop so it is a contributing background factor only.
