Oil could fall below $20 a barrel and “stock markets could easily shed another 30-40% of their values,” one analyst said.
The biggest shocks will likely come after April 1, when Saudi Arabia and Russia ramp up their crude production after a previously-agreed OPEC+ deal expires.
“The last time there was a global surplus of this magnitude was never,” Jim Burkhard, head of oil markets at IHS Markit, wrote Monday.
Oil dropped more than 6% to multi-year lows on Tuesday, and analysts said more declines may follow as the coronavirus pandemic hits demand and Saudi Arabia and Russia battle for market share.
Brent crude fell 98 cents, or 3.2% to trade at $29.07 per barrel, having earlier touched $31.25. On Monday it sank to $29.45, the lowest since January 2016.
U.S. West Texas Intermediate crude reversed all of an earlier 4.7% gain to shed $1.75, or 6.1%, and close at $26.95 per barrel, its lowest level since Feb. 2016.
Oil dropped 24% to a more than 18-year low on Wednesday as the coronavirus pandemic continues to sap demand for crude, and as rising worries about a global recession lead to fears of longer-term demand destruction.
U.S. West Texas Intermediate crude fell 24.4%, or $6.58, to settle at $20.37 per barrel, its lowest level since Feb. 2002. At the low of the day, the contract hit $20.06. It was WTI’s third worst day on record.
International benchmark Brent crude shed 14.1%, or $4.07, to trade at $24.67, its lowest level since 2003.
The Trump administration is considering a diplomatic push to get Saudi Arabia to close its taps and using the threat of sanctions on Russia to force them to reduce output, the Wall Street Journal reported, quoting unidentified sources.
Quarantine is going to over and China almost zero new case reported... After oil price plunged to record lowest below USD $20 plus and KLSE hitting the record lowest of 1,200 plus points, now it’s the beginning of the bull run market in Asian stock markets especially KLSE !
Guys virus is spreading getting serious, US started closing city, where is end of bear?? Oil price plunge -8% and dji crash another -900 pts again!! Should jump back to 0.03 or below on Monday open!! Friday just a big trapped for us to buy. But for me is a running chance and cut loss at 0.040!!
Oil dropped 11% on Friday, giving back early gains, even as the world’s richest nations poured unprecedented aid into the global economy to stop a coronavirus-driven recession and U.S.
U.S. crude futures for April fell $2.79, or 11.06%, to settle at $22.43 per barrel. Brent crude futures fell $1.49 or 5.2%, to settle at $26.98 per barrel.
yaya if the oil price maintain at 20++ sure will close shop like perisai, if drop below 20 usd for oil price, it will cause faster shop close in this year!!
remember every rebound is just a temporary must run ASAP, covid already spoiled our economic!! Impossible recover so fast as political said!! A lot problems are coming soon in whole world!!
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Mabel
24,455 posts
Posted by Mabel > 2020-03-16 23:31 | Report Abuse
@GooShem no. run. crude 29 d
16/03/2020 9:12 PM
Heard you loss like mad in krono ... chase at 0.71
Meow..