◂ Event Timeline

Oct 4, 2023MARKETGlobal

Oil Prices Drop 6% As Worries Mount Over Demand Destruction

Oil prices dropped about 6% as JPMorgan analysts warned of demand destruction after the summer price rally. The bank's note said global oil demand could be weakening as peak travel season ends.

Prices fell on those concerns.

WHY IT MATTERS

Demand destruction after a price spike points to lower crude prices in the near term. Lower energy costs reduce transport and processing costs for feed producers.

AFFECTSWTI▼BRENT▼

SOURCE
markets.businessinsider.comMatthew FoxOct 4, 2023

Price reaction & history

WTI▼bearishSO FAR1d -5.6%5d -3.7%20d -8.8%

Not enough comparable past events yet for a historical read.

BRENT▼bearishSO FAR1d -5.3%5d -3.8%20d -6.0%

Not enough comparable past events yet for a historical read.

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.

Linked price moves

BRENT-9.6%5 periods to Oct 5, 2023-2.8σ
JPMorgan's demand-destruction warning hit sentiment and contributed to the roughly 6% drop.
BRENT-4.9%1 period to Oct 4, 2023-3.6σ
JPMorgan's warning of demand destruction after the summer rally hit sentiment and fed the selloff on Oct 4.

WTI · GP ▸

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BRENT · GP ▸

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