Oil Plummets in Worst Week Since 2008 Amid Coronavirus Panic - Bloomberg:
Oil had it worst week since the financial crisis as panic over the coronavirus pandemic battered global markets.
Futures in New York fell 16% this week, marking the biggest weekly drop since December 2008. The viral outbeak showed no signs of relenting, with the World Health Organization raising global risk to “very high” from “high.” The collapse of financial markets prompted U.S. Federal Reserve Chairman Jerome Powell to assure investors that the central bank is prepared to cut interest rates to mitigate the virus’ threat to economic activity.
“A month ago the concern was only China,” said Pavel Molchanov, energy research analyst at Raymond James & Associates Inc. “This meltdown is a fear of a global pandemic. The risk is we will see the same disruptions we saw in Asia, from travel restrictions to quarantines, materialize all over the world.”
Oil prices have tumbled almost 27% this year on concerns the coronavirus outbreak will dent crude demand. OPEC and its allies have signaled the coalition could reach an agreement to stem the rout before meeting in Vienna next week. Saudi Arabia is reportedly pushing for collective OPEC+ production cuts of an additional 1 million barrels a day, of which it would bear the brunt.
Oil had it worst week since the financial crisis as panic over the coronavirus pandemic battered global markets.
Futures in New York fell 16% this week, marking the biggest weekly drop since December 2008. The viral outbeak showed no signs of relenting, with the World Health Organization raising global risk to “very high” from “high.” The collapse of financial markets prompted U.S. Federal Reserve Chairman Jerome Powell to assure investors that the central bank is prepared to cut interest rates to mitigate the virus’ threat to economic activity.
“A month ago the concern was only China,” said Pavel Molchanov, energy research analyst at Raymond James & Associates Inc. “This meltdown is a fear of a global pandemic. The risk is we will see the same disruptions we saw in Asia, from travel restrictions to quarantines, materialize all over the world.”
Oil prices have tumbled almost 27% this year on concerns the coronavirus outbreak will dent crude demand. OPEC and its allies have signaled the coalition could reach an agreement to stem the rout before meeting in Vienna next week. Saudi Arabia is reportedly pushing for collective OPEC+ production cuts of an additional 1 million barrels a day, of which it would bear the brunt.
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