# Oil drops sharply on Fed outlook, ample supply

> Oil fell on Thursday for the first time in six days after the Federal Reserve cut rates but signaled the move might not start a longer series of cuts. Brent dropped $1.49 to $63.56 and WTI fell 3% to $56.81. A stronger dollar and rising U.S. output weighed on prices despite a bigger-than-expected drop in U.S. inventories.

- Date: 2019-08-01 · published 2019-08-01T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/8496-oil-drops-sharply-on-fed-outlook-ample-supply
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A firmer dollar makes dollar-priced commodities more expensive for foreign buyers, which tends to weigh on grain and oilseed prices. Dimmer rate-cut expectations also pressure commodity demand.

## Read by commodity

- DXY: bullish ▲
- WTI: bearish ▼
- BRENT: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| BRENT | 2019-08-07 | 5 | -14.1% | -3.3 | The Fed's non-committal cut, stronger dollar and rising US output weighed on Brent on Aug 1. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2021-03-18 | [Oil hits skids, drops 7% on worsening outlook for coronavirus in Europe](https://feedsoft.ai/events/6198-oil-hits-skids-drops-7-on-worsening-outlook-for-coronavirus-in-europe.md) | -5.3% | -1.8% |
| WTI | 2024-10-15 | [Oil plunges 4% as Iran supply disruption concerns ease, demand outlook weakens](https://feedsoft.ai/events/28029-oil-plunges-4-as-iran-supply-disruption-concerns-ease-demand-outlook-weakens.md) | -5.8% | -7.4% |
| WTI | 2020-03-30 | [Crude oil futures drop as pandemic darkens demand outlook](https://feedsoft.ai/events/5321-crude-oil-futures-drop-as-pandemic-darkens-demand-outlook.md) | +64.1% | -28.3% |
| WTI | 2020-10-01 | [Oil dips nearly 4% on weak demand outlook and higher OPEC output](https://feedsoft.ai/events/50818-oil-dips-nearly-4-on-weak-demand-outlook-and-higher-opec-output.md) | -0.6% | -7.0% |
| WTI | 2021-04-21 | [Oil prices drop as India’s COVID-19 surge dents demand outlook \| Reuters](https://feedsoft.ai/events/47759-oil-prices-drop-as-india-s-covid-19-surge-dents-demand-outlook-reuters.md) | +0.7% | +4.7% |
| BRENT | 2021-03-18 | [Oil hits skids, drops 7% on worsening outlook for coronavirus in Europe](https://feedsoft.ai/events/6198-oil-hits-skids-drops-7-on-worsening-outlook-for-coronavirus-in-europe.md) | -5.6% | -2.0% |
| BRENT | 2024-10-15 | [Oil plunges 4% as Iran supply disruption concerns ease, demand outlook weakens](https://feedsoft.ai/events/28029-oil-plunges-4-as-iran-supply-disruption-concerns-ease-demand-outlook-weakens.md) | -5.4% | -7.6% |
| BRENT | 2020-03-30 | [Crude oil futures drop as pandemic darkens demand outlook](https://feedsoft.ai/events/5321-crude-oil-futures-drop-as-pandemic-darkens-demand-outlook.md) | +21.9% | -26.3% |

## Sources

- cnbc.com: https://www.cnbc.com/2019/08/01/oil-markets-us-federal-reserve-in-focus.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.