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Brent settled 1.6% lower and WTI fell 2.2% on Monday, October 2, 2023, extending a fourth straight daily decline. Brent traded below $90 a barrel on Tuesday.
Fed officials signaled that rates would stay restrictive for some time to bring inflation down.
Expectations of higher-for-longer rates raise recession risk and reduce expected oil demand, which weighs on crude and diesel prices. Stronger dollar conditions can also affect commodity import demand.
thenationalnews.comSarmad KhanOct 3, 2023After 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 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 2,356 past bullish macro events, US Dollar (Broad) moved a median +0.2% over 5 sessions (60% higher; middle half -0.3% to +0.7%), and +0.4% 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.
A fourth straight daily decline on restrictive Fed rate signals and macro concerns added to the early-window drop.
Covers Oct 2 settlement declines and hawkish Fed signals of restrictive rates, a macro demand/sentiment headwind, though it reports a smaller 1.6% settlement move.
Prior declines on macro concerns and a restrictive Fed set up a weak sentiment backdrop that made the Oct 4 drop sharper.
