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Brent crude settled almost 3 percent lower after a Druzhba pipeline shutdown that carries Russian crude to Europe, with flows expected to normalize within two weeks. President Trump then called on OPEC to increase output, and he said Saudi Arabia and others agreed to raise oil flow.
Expectations of higher OPEC+ output and a quick restart of Russian flows add supply and push crude prices lower. Lower crude reduces energy and transport costs that feed into feed production.
think.ing.comWarren PattersonApr 29, 2019After 250 past bearish geopolitics events, Crude Oil (Brent) moved a median -3.1% over 5 sessions (36% higher; middle half -7.9% to +1.6%), and -5.5% over 20.
After 255 past bearish geopolitics events, Crude Oil (WTI) moved a median -2.4% over 5 sessions (31% higher; middle half -7.0% to +1.7%), and -5.0% 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.
