# Oil falls over 3% on fresh trade worries, posts biggest monthly drop in six months

> Oil fell over 3% on Friday and posted its biggest monthly drop in six months after President Trump threatened tariffs on Mexico, a major US trade partner and crude supplier. The plan would start at 5% on June 10 and rise monthly to 25% by October 1. Mexico had not said whether it would retaliate.

- Date: 2019-05-31 · published 2019-05-31T12:00:00.000Z
- Category: trade · region US · magnitude high
- Page: https://feedsoft.ai/events/9883-oil-falls-over-3-on-fresh-trade-worries-posts-biggest-monthly-drop-in-six-months
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md)

## Why it matters

Tariffs could disrupt the cross-border crude trade, since US refiners import about 680,000 barrels per day of Mexican crude, and they add to recession fears that weigh on demand. Both contracts are pressured lower.

## Read by commodity

- WTI: bearish ▼
- BRENT: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| BRENT | 2019-06-03 | 5 | -10.4% | -2.9 | Trump's Mexico tariff threat on May 31 triggered a >3% fall and the biggest monthly drop, hitting demand expectations right inside the 5-day window. |
| BRENT | 2019-06-03 | 1 | -5.4% | -3.2 | Trump's May 31 Mexico tariff threat triggered the selloff that carried into the June 3 session, with the escalating tariff schedule hitting demand sentiment. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2019-05-31 | [Oil Market: US oil falls 5.5% to $53.50 per barrel on fresh trade worries](https://feedsoft.ai/events/9885-oil-market-us-oil-falls-5-5-to-53-50-per-barrel-on-fresh-trade-worries.md) | -6.9% | +4.9% |
| WTI | 2019-05-23 | [Oil plummets, on track for biggest weekly drop in 2019](https://feedsoft.ai/events/6604-oil-plummets-on-track-for-biggest-weekly-drop-in-2019.md) | -4.2% | -12.5% |
| WTI | 2019-05-23 | [Oil Tanks On Worst Day In Six Months \| OilPrice.com](https://feedsoft.ai/events/6610-oil-tanks-on-worst-day-in-six-months-oilprice-com.md) | -4.2% | -12.5% |
| WTI | 2019-06-03 | [Oil falls as trade worries mount, Saudi comments limit losses](https://feedsoft.ai/events/11307-oil-falls-as-trade-worries-mount-saudi-comments-limit-losses.md) | +0.9% | +9.0% |
| WTI | 2019-05-29 | [Oil prices drop as trade war worries outweigh supply disruptions](https://feedsoft.ai/events/9886-oil-prices-drop-as-trade-war-worries-outweigh-supply-disruptions.md) | -9.3% | -2.2% |
| BRENT | 2019-05-31 | [Oil Market: US oil falls 5.5% to $53.50 per barrel on fresh trade worries](https://feedsoft.ai/events/9885-oil-market-us-oil-falls-5-5-to-53-50-per-barrel-on-fresh-trade-worries.md) | -8.8% | -2.2% |
| BRENT | 2019-05-23 | [Oil plummets, on track for biggest weekly drop in 2019](https://feedsoft.ai/events/6604-oil-plummets-on-track-for-biggest-weekly-drop-in-2019.md) | -4.6% | -9.1% |
| BRENT | 2019-05-23 | [Oil Tanks On Worst Day In Six Months \| OilPrice.com](https://feedsoft.ai/events/6610-oil-tanks-on-worst-day-in-six-months-oilprice-com.md) | -4.6% | -9.1% |

## Sources

- moneycontrol.com: https://www.moneycontrol.com/news/business/commodities/oil-poised-for-biggest-monthly-drop-in-six-months-on-trade-wars-4050771.html
- reuters.com: https://www.reuters.com/article/us-global-oil/oil-falls-3-on-trade-worries-heads-for-biggest-monthly-drop-in-six-months-idUSKCN1T1056/?feedName=topNews&feedType=RSS

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