(Bloomberg) -- Oil plunged to the lowest in 14 months as panic from the fast-spreading coronavirus spiraled global markets deeper into losses for the seventh straight day.
Futures fell as much as 6.3% in New York on Friday slipping below $45 a barrel. The indiscriminate sell-off has ravaged financial markets with the S&P 500 plunging deeper and Treasury yields sinking to fresh record lows as fears of a global contagion showed no signs of relenting.
The collapse has prompted Federal Reserve Bank of St. Louis President James Bullard to consider interest-rate reductions if the coronavirus develops into a worldwide pandemic.
“This has been the worst week for the market in recent history,” said Peter McGinn, market strategist at RJ O’Brien & Associates Llc. “The crescendo of selling is directly ahead. Severe demand destruction is being seen and until there is a limit to the crisis with a vaccine, oil is going to go down to even $40 a barrel.”
Amid the selling panic, there are signs that OPEC and its allies could be nearing agreement on action to stem the rout before meeting in Vienna next week. Saudi Arabia is now pushing for collective OPEC+ production cuts of an additional 1 million barrels a day, which it would bear the brunt of, according to a report in the Financial Times.
However, Riyadh’s proposal may not be enough to balance the oil market, according to a coronavirus-scenario analysis by Bloomberg Intelligence analysts Salih Yilmaz and Rob Barnett. The alliance’s overall compliance with production cuts not been enough to support oil prices and the re-emergence of Libyan barrels also remains a risk.
West Texas Intermediate futures for April delivery fell $2.91 to $44.19 a barrel as of 10:50 a.m. local time on the New York Mercantile Exchange.
Brent for May settlement declined 3.4% to $50.39 a barrel on the ICE Futures Europe exchange in London, having earlier slipped below $50.
The market’s price structure has weakened dramatically, tumbling into a contango, while profits from making products like diesel have also collapsed.
--With assistance from James Thornhill, Alex Longley and Ann Koh.
To contact the reporter on this story: Jackie Davalos in New York at jdavalos10@bloomberg.net
To contact the editors responsible for this story: David Marino at dmarino4@bloomberg.net, Mike Jeffers, Catherine Traywick
For more articles like this, please visit us at bloomberg.com
Subscribe now to stay ahead with the most trusted business news source.
©2020 Bloomberg L.P.
"oil" - Google News
February 28, 2020 at 11:06PM
https://ift.tt/32xCxw9
Oil Poised for Worst Week in 11 Years Amid Coronavirus Panic - Yahoo Finance
"oil" - Google News
https://ift.tt/2PqPpxF
Shoes Man Tutorial
Pos News Update
Meme Update
Korean Entertainment News
Japan News Update
Bagikan Berita Ini
0 Response to "Oil Poised for Worst Week in 11 Years Amid Coronavirus Panic - Yahoo Finance"
Post a Comment