# Oil Slumps to Lowest Since 2016 as Demand Collapse Triggers Rout - Bloomberg

> Brent crude fell more than 12.5% as the coronavirus spread prompted widening restrictions that threatened the largest annual drop in oil demand on record. Saudi Aramco's CFO said the company was very comfortable with oil at $30 a barrel, and gasoline futures hit their weakest level since at least 2005.

- Date: 2020-03-15 · published 2020-03-15T12:00:00.000Z
- Category: macro · region Global · magnitude high
- Page: https://feedsoft.ai/events/7657-oil-slumps-to-lowest-since-2016-as-demand-collapse-triggers-rout-bloomberg
- Commodities: [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md)

## Why it matters

Collapsing fuel demand cuts diesel and energy costs for feed mills and lowers the value of biofuel-linked feedstocks. Lower crude prices are bearish for energy-linked agricultural commodities.

## Read by commodity

- WTI: bearish ▼
- BRENT: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| BRENT | 2020-03-16 | 1 | -13.2% | -3.0 | Bloomberg report of Brent falling over 12.5% to the lowest since 2016 on collapsing demand from virus restrictions, matching the size and timing of the Mar 16 drop. |
| BRENT | 2020-03-19 | 5 | -23.0% | -4.5 | Brent fell more than 12.5% on widening virus restrictions threatening record demand decline, with Aramco comfortable with $30 oil signalling no supply restraint. |
| WTI | 2020-03-18 | 5 | -30.6% | -6.5 | Brent fell more than 12.5% as the demand collapse and a price-war supply glut hit oil, with the largest annual demand drop on record in prospect. |
| WTI | 2020-03-17 | 1 | -13.2% | -3.8 | Describes the demand-collapse rout in oil around March 15-16, with the largest annual demand drop on record feeding the selloff that continued on March 17. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| BRENT | 2019-07-01 | [Oil Plunges in Worst Reaction to OPEC Since 2014 on Demand Woes - Bloomberg](https://feedsoft.ai/events/58299-oil-plunges-in-worst-reaction-to-opec-since-2014-on-demand-woes-bloomberg.md) | -4.2% | -6.1% |
| BRENT | 2020-02-26 | [Crude Sinks to Lowest in a Year as Coronavirus Panic Increases - Bloomberg](https://feedsoft.ai/events/7112-crude-sinks-to-lowest-in-a-year-as-coronavirus-panic-increases-bloomberg.md) | -5.6% | -53.2% |
| BRENT | 2022-04-25 | [Oil slumps 4% as Shanghai lockdowns stoke demand fears](https://feedsoft.ai/events/42020-oil-slumps-4-as-shanghai-lockdowns-stoke-demand-fears.md) | +2.8% | +6.8% |
| BRENT | 2021-03-19 | [Oil battered in ugly week as demand concerns, dollar spur slump](https://feedsoft.ai/events/7045-oil-battered-in-ugly-week-as-demand-concerns-dollar-spur-slump.md) | -1.8% | +5.9% |
| BRENT | 2023-03-16 | [Oil slumps nearly 5% to lowest in more than a year as banking fears mount](https://feedsoft.ai/events/37047-oil-slumps-nearly-5-to-lowest-in-more-than-a-year-as-banking-fears-mount.md) | +3.2% | +16.6% |
| WTI | 2019-07-01 | [Oil Plunges in Worst Reaction to OPEC Since 2014 on Demand Woes - Bloomberg](https://feedsoft.ai/events/58299-oil-plunges-in-worst-reaction-to-opec-since-2014-on-demand-woes-bloomberg.md) | -1.4% | -2.5% |
| WTI | 2020-02-26 | [Crude Sinks to Lowest in a Year as Coronavirus Panic Increases - Bloomberg](https://feedsoft.ai/events/7112-crude-sinks-to-lowest-in-a-year-as-coronavirus-panic-increases-bloomberg.md) | -5.2% | -55.9% |
| WTI | 2019-03-01 | [Canadian Dollar Slumps on `Gruesome' GDP and Sliding Oil Prices - Bloomberg](https://feedsoft.ai/events/60317-canadian-dollar-slumps-on-gruesome-gdp-and-sliding-oil-prices-bloomberg.md) | -1.0% | +3.6% |

## Sources

- bloomberg.com: https://www.bloomberg.com/news/articles/2020-03-15/oil-drops-in-volatile-trade-as-fed-cuts-rates-travel-bans-grow

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.