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WTI and Brent settled 5.5% to 7% lower on Wednesday after an EIA report showed exceptionally weak US gasoline demand and a sharp inventory build. WTI fell below $85 for the first time since early August.
Demand erosion and recession concerns tied to possible Fed hikes lower crude prices, which weakens biofuel-linked demand and energy input costs.
dtnpf.comLiubov GeorgesOct 4, 2023After 171 past bearish report events, Crude Oil (WTI) moved a median -1.5% over 5 sessions (37% higher; middle half -4.8% to +1.9%), and -0.9% over 20.
After 129 past bearish report events, Crude Oil (Brent) moved a median -1.3% over 5 sessions (45% higher; middle half -3.9% to +2.5%), and +0.4% 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.
Directly attributes the Oct 4 selloff to the EIA report showing very weak US gasoline demand and a sharp inventory build, a demand-side shock.
Weak gasoline demand and a sharp inventory build pushed Brent and WTI down 5.5-7% on the day.
