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Oil prices fell to their lowest level in more than a year as the coronavirus outbreak cut Chinese demand and raised fears of supply disruption. Crude settled down $2.17, or 3.8%, at $54.45 a barrel, its lowest since January of last year.
Lower crude prices weaken the energy complex and reduce input costs for diesel and biofuels, which can pull down soyoil and ethanol-linked feed co-products such as DDGS. The demand shock from China is the main bearish driver.
reuters.comJessica Resnick-AultFeb 3, 2020After 32 past bearish disease events, Crude Oil (WTI) moved a median -5.2% over 5 sessions (13% higher; middle half -15.0% to -2.4%), and -5.7% over 20.
After 26 past bearish disease events, Crude Oil (Brent) moved a median -6.0% over 5 sessions (15% higher; middle half -13.3% to -2.0%), and -6.8% 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.
Same-day report of oil at 13-month lows as coronavirus cut Chinese crude demand, directly explaining the Brent drop on Feb 3.
Oil settled at 13-month lows on Feb 3 as coronavirus cut Chinese demand, a major leg of the 5-day decline.
