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Oil prices fell sharply in March 2020 amid a collapse in demand from the COVID-19 pandemic, which cut Chinese and then global consumption. The article also describes a dispute between Russia and Saudi Arabia over production, and it traces the earlier 2014-2015 price collapse driven by rising US shale output.
Lower crude prices reduce the cost of diesel and energy inputs, and they weaken the ethanol and biofuel link that supports corn and soybean oil demand. Feed buyers should expect softer energy-linked support for grain and oilseed prices.
iiss.orgLaraveys Mahmoudi, Roger KangasMar 27, 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.
After 40 past bearish macro events, Soybean Oil moved a median -0.8% over 5 sessions (45% higher; middle half -4.5% to +1.7%), and -1.5% over 20.
After 301 past bearish macro events, Corn moved a median -0.1% over 5 sessions (47% higher; middle half -2.2% to +1.3%), and +0.2% 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.
