# Oil prices tumble to lowest in more than a year as equities sell off

> Oil prices fell about 5% on Thursday to their lowest level in more than a year. Oversupply worries and weaker energy demand outlooks drove the decline. Global equities sold off after the U.S. Federal Reserve raised rates and signaled further hikes over the next two years.

- Date: 2018-12-20 · published 2018-12-20T12:00:00.000Z
- Category: macro · region Global · magnitude medium
- Page: https://feedsoft.ai/events/8517-oil-prices-tumble-to-lowest-in-more-than-a-year-as-equities-sell-off
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md)

## Why it matters

Tighter U.S. monetary policy and equity weakness reduce demand expectations for energy, pushing crude lower. Cheaper oil lowers fuel and transport costs but also cuts the value of biofuel-linked feedstock 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 20 ~5% drop to a 1+ year low as the Fed hike triggered an equity selloff and oversupply worries, hitting sentiment and demand outlook within the window. |
| BRENT | 2018-12-24 | 5 | -12.6% | -3.8 | Dec 20 ~5% drop as the Fed hike triggered an equity selloff and raised demand concerns, adding to oversupply worries. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2020-02-26 | [Oil prices drop to lowest in more than a year as coronavirus spreads](https://feedsoft.ai/events/7110-oil-prices-drop-to-lowest-in-more-than-a-year-as-coronavirus-spreads.md) | -5.2% | -55.9% |
| WTI | 2023-03-16 | [Oil slumps nearly 5% to lowest in more than a year as banking fears mount](https://feedsoft.ai/events/37047-oil-slumps-nearly-5-to-lowest-in-more-than-a-year-as-banking-fears-mount.md) | +4.9% | +21.8% |
| WTI | 2023-10-04 | [Oil plunges $5 in biggest one-day drop in more than a year](https://feedsoft.ai/events/7360-oil-plunges-5-in-biggest-one-day-drop-in-more-than-a-year.md) | -3.7% | -8.8% |
| WTI | 2020-02-27 | [Oil prices dive to lowest in over a year on coronavirus fears \| Reuters](https://feedsoft.ai/events/7109-oil-prices-dive-to-lowest-in-over-a-year-on-coronavirus-fears-reuters.md) | -3.9% | -55.0% |
| WTI | 2023-05-30 | [Canadian dollar dips as oil prices fall more than 4%](https://feedsoft.ai/events/36186-canadian-dollar-dips-as-oil-prices-fall-more-than-4.md) | -0.4% | -6.6% |
| BRENT | 2020-02-26 | [Oil prices drop to lowest in more than a year as coronavirus spreads](https://feedsoft.ai/events/7110-oil-prices-drop-to-lowest-in-more-than-a-year-as-coronavirus-spreads.md) | -5.6% | -53.2% |
| BRENT | 2023-03-16 | [Oil slumps nearly 5% to lowest in more than a year as banking fears mount](https://feedsoft.ai/events/37047-oil-slumps-nearly-5-to-lowest-in-more-than-a-year-as-banking-fears-mount.md) | +3.2% | +16.6% |
| BRENT | 2023-10-04 | [Oil plunges $5 in biggest one-day drop in more than a year](https://feedsoft.ai/events/7360-oil-plunges-5-in-biggest-one-day-drop-in-more-than-a-year.md) | -3.8% | -6.0% |

## Sources

- reuters.com: https://www.reuters.com/article/us-global-oil/oil-prices-sink-to-lowest-in-a-year-as-stock-markets-fall-idUSKCN1OJ06A/

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