The oil market is collapsing thanks to the virus shut down and the oil war between Saudi Arabia and Russia. The demand for crude has dried up. Hopefully, the leftists are looking at this and realizing they are playing with fire by keeping all businesses shut down.
It’s hitting the markets hard.
U.S. crude futures for May delivery sank to their lowest level on record ever Monday. It’s at $2.40 and cheaper than a pint of beer. It crashed 301% to $36.73 at 2:52 p.m. Oil went negative at 3:34 pm after publication.
BREAKING: Oil drops below $3 a barrel https://t.co/R4JpP8cmw7 pic.twitter.com/kprZzGBYQT
— Bloomberg (@business) April 20, 2020
We are in very serious trouble.
“In my view, the plunge in oil prices speaks to the decline of global growth as demand dries up,” said Dan Russo, chief market strategist at Chaikin Analytics, a quantitative investment research firm based in Philadelphia. “This could be a concern for investors who were expecting a V-shaped recovery on the economic front. Oil prices tend to be a gauge for the health of the global economy. It’s difficult to be bullish on global economic growth with oil prices at multi-decade lows.”
In a deal worked out with President Trump, OPEC+ and other producers cut production by 9.7 million barrels a day earlier in April, but the cuts weren’t seen as enough to counter the demand drop caused by the coronavirus pandemic.
Stocks of energy giants declined Monday. Exxon Mobil (XOM) fell 3.3% and Chevron (CVX) was down 2%.
Around 90 S&P 500 companies are expected to report quarterly earnings this week, with Refinitiv estimating first-quarter profits for the index will fall 13% from the same period last year and another 27.3% over the three months ending in June.
It the U.S. economy crashes, the world crashes. Tell Dr. Fauci to put a sock in it.
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