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WTI settled down 24.4% at $20.37 a barrel, its lowest since February 2002, and Brent fell 14.1% to about $24.67. The drop was driven by the coronavirus demand slump and the expected end of OPEC+ production cuts.
Expected surplus supply and demand destruction point to sustained low crude prices, which lowers diesel costs but weakens the biofuel link that supports vegetable oil and corn demand.
cnbc.comPippa StevensMar 18, 2020After 565 past bearish macro events, Crude Oil (WTI) moved a median -1.4% over 5 sessions (41% higher; middle half -5.9% to +3.0%), and -0.5% over 20.
After 312 past bearish macro events, Crude Oil (Brent) moved a median -1.7% over 5 sessions (38% higher; middle half -5.4% to +2.3%), and -1.7% 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.
Directly describes the March 18 crash (Brent -14%, WTI -24%) driven by the coronavirus demand slump and expected end of OPEC+ cuts.
WTI fell 24.4% to $20.37 on March 18, the day that anchors the 5-day move, on the demand slump and the expected end of OPEC+ cuts.
Mar 18 crash with Brent down ~14% to ~$24.67 on demand slump and expected end of OPEC+ cuts falls inside the window and directly drives the 5-day drop.
