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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Why would Russia and Saudi Arabia do this? Don’t they know that it is a globalist utopia free of all borders where comrades ride on rainbow unicorns together because we are all the same?
Why it’s almost as if some countries are a little more equal than others and don’t want to play globalist utopia.
The energy market is an indicator of the broader market in general. .It’s a demand problem with over supply. The broader economy is and will lack the demand when reopening. Government supplied paychecks aren’t sufficient for a quick return to the demand side. That means an economic shrinking by necessity. Therefore a depression is needed before there can be a recovery. Those who are “capable” of returning to economic activity will not be sufficient for a quick rebound. The ranks of unemployed are increasing at too fast a rate. It will end up being long and drawn out. If the shutdown continues for months the broader economy will compare to the current energy industry causing years of stagnation.
If this doesn’t end, the only alternative is the Federal Government will Have to nationalize the industry. That’s the beginning of Real Serious problems down the road. We are getting to a point where it’s downhill from here, thanks to the noted economist, Dr. Fauci.
How is this possible. Oil is in Negative territory. We are on “the eve of Destruction”.
Our entire economy is being obliterated by the Communist China using he virus as a weapon aided by the Democrats/Media.