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WTI crude fell 7.9% to $53.95 and Brent dropped more than 6% to $60.67 after President Trump said an additional 10% tariff on $300 billion of Chinese goods would take effect in September. It was the worst day for WTI in more than four years.
Analysts linked the selloff to concerns that the trade war would slow the global economy.
The tariff announcement lowers the outlook for global growth and energy demand, pushing crude sharply lower. Weaker crude also reduces support for biofuel margins that influence demand for vegetable oils and corn.
cnbc.comMaggie FitzgeraldAug 1, 2019After 80 past bearish trade events, Crude Oil (WTI) moved a median -2.2% over 5 sessions (30% higher; middle half -6.9% to +0.8%), and -1.5% over 20.
After 56 past bearish trade events, Crude Oil (Brent) moved a median -5.6% over 5 sessions (20% higher; middle half -9.0% to -1.7%), and -4.5% over 20.
After 803 past bearish trade events, Soybeans moved a median +0.0% over 5 sessions (51% higher; middle half -1.7% to +1.7%), and +0.9% 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.
Documents the Aug 1 plunge in WTI and Brent tied to trade-war worries over slower global growth.
