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S&P Global Platts reported that Dated Brent fell about 5% in the week of January 24 to 31, while copper saw a larger decline. Several airlines suspended or reduced flights due to the coronavirus, and Platts forecast jet fuel demand could fall by 618,000 to 1 million barrels a day in February.
Crude palm oil prices dropped sharply, correcting 10% in one day after a three-month rally, as China, the second-largest palm oil buyer, faced weaker demand.
Projected jet fuel and energy demand losses point to bearish crude and diesel prices. The palm oil sell-off signals weaker vegetable oil demand from China, which pressures palm-based feed and food oil prices.
spglobal.comS&P Global PlattsFeb 5, 2020After 26 past bearish disease events, 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, DIESEL moved a median -5.1% over 5 sessions (38% higher; middle half -6.3% to +1.2%), and -6.1% over 20.
After 10 past bearish disease events, PALMOIL moved a median +0.4% over 5 sessions (50% higher; middle half -5.0% to +1.3%), and -8.5% 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.
Notes crude palm oil corrected 10% in one day on weaker Chinese demand, plus broader commodity and crude oil weakness that spilled over into vegetable oils.
