# US crude plunges 7 percent on oversupply concerns

> WTI crude settled down 7.3% at $46.24 a barrel, its lowest close since August 2017, and Brent fell 5.6% to $56.26. Analysts pointed to U.S. shale output expected to exceed 8 million barrels per day for the first time and Russia reportedly pumping a record 11.42 million bpd. Signs of weakening demand and slowing global growth added to the pressure.

- Date: 2018-12-18 · published 2018-12-18T12:00:00.000Z
- Category: market · region US · magnitude medium
- Page: https://feedsoft.ai/events/8516-us-crude-plunges-7-percent-on-oversupply-concerns
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md)

## Why it matters

Record non-OPEC supply combined with softer demand points to a sustained crude price slide, which lowers diesel and freight costs for feed buyers. Weaker oil also pulls down biofuel margins that support vegetable oil demand.

## Read by commodity

- WTI: bearish ▼
- BRENT: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| BRENT | 2018-12-20 | 5 | -10.5% | -3.0 | Dec 18 plunge (Brent -5.6%) on record US shale and Russian output and weakening demand signals was a major driver of the 5-day decline. |
| BRENT | 2018-12-24 | 5 | -12.6% | -3.8 | Dec 18 plunge (Brent -5.6%) on record US shale and Russian output plus weakening demand signals is a major supply-glut driver within the window. |

## Sources

- cnbc.com: https://www.cnbc.com/2018/12/18/oil-markets-us-crude-in-focus.html

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