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Opec and its allies were expected to meet as crude fell about 20% from its January peak, reaching its lowest level in a year. Coronavirus-related Lunar New Year extensions and travel restrictions in China shut factories and cut oil consumption, and airlines suspended flights, hitting jet fuel demand.
Sinopec reportedly cut crude processing by about 12%.
Sharp demand destruction in China and aviation fuel weakness point to lower crude and diesel prices, while possible OPEC output cuts could partly offset the decline. The net price direction depends on whether producers act.
bbc.comAdd as preferred on GoogleFeb 4, 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.
After 13 past bearish disease events, ULSD / Diesel moved a median -5.1% over 5 sessions (38% higher; middle half -6.3% to +1.2%), and -6.1% 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.
Explains the demand mechanism: factory shutdowns, Sinopec run cuts of ~12% and lower jet fuel demand hit crude.
