# Oil plunges nearly 5 percent to 17-month low as stock market slumps

> U.S. WTI crude fell 4.8 percent to $45.88, its lowest close since July 2017, and Brent settled at $54.35 after the Federal Reserve raised interest rates and equities slumped. Bearish reports from Asia, including weaker Indian crude import data, added to concerns about both supply and demand.

- Date: 2018-12-20 · published 2018-12-20T12:00:00.000Z
- Category: macro · region Global · magnitude medium
- Page: https://feedsoft.ai/events/8704-oil-plunges-nearly-5-percent-to-17-month-low-as-stock-market-slumps
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md)

## Why it matters

Higher rates and bearish demand signals from major importers such as India reduce crude consumption expectations and push prices lower. Weaker energy prices also pressure biofuel margins that support corn and 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 | Brent settled at $54.35 on Dec 20, 17-month low, from the Fed rate hike, equity slump and weak Asian import data, directly contributing to the move. |
| BRENT | 2018-12-24 | 5 | -12.6% | -3.8 | Brent settled at $54.35 on Dec 20 as the Fed hike, equity slump and weak Asian import data hit demand expectations. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2018-12-24 | [Oil plunges 6 percent as economic slowdown fears grip market](https://feedsoft.ai/events/8700-oil-plunges-6-percent-as-economic-slowdown-fears-grip-market.md) | -0.5% | +15.7% |
| 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 | 2018-02-02 | [Oil prices fall as US stock market slumps and dollar strengthens](https://feedsoft.ai/events/66659-oil-prices-fall-as-us-stock-market-slumps-and-dollar-strengthens.md) | -7.0% | -7.1% |
| WTI | 2021-12-15 | [Canadian dollar at nearly 3-month low as oil prices fall \| Reuters](https://feedsoft.ai/events/43853-canadian-dollar-at-nearly-3-month-low-as-oil-prices-fall-reuters.md) | +0.7% | +16.9% |
| WTI | 2020-03-11 | [Ag Markets Feel Pinch As Oil Prices Plunge - ProAg](https://feedsoft.ai/events/54223-ag-markets-feel-pinch-as-oil-prices-plunge-proag.md) | -21.7% | -31.5% |
| BRENT | 2018-12-24 | [Oil plunges 6 percent as economic slowdown fears grip market](https://feedsoft.ai/events/8700-oil-plunges-6-percent-as-economic-slowdown-fears-grip-market.md) | -1.3% | +15.8% |
| 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 | 2018-02-02 | [Oil prices fall as US stock market slumps and dollar strengthens](https://feedsoft.ai/events/66659-oil-prices-fall-as-us-stock-market-slumps-and-dollar-strengthens.md) | -6.3% | -5.6% |

## Sources

- cnbc.com: https://www.cnbc.com/2018/12/20/oil-markets-global-economy-crude-supply-in-focus.html

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