Oil Finds Firmer Ground on Hopes for U.S.-Saudi Price Detente - Bloomberg:
Crude rose for a second day after the U.S. signaled it was open to the possibility of an alliance with Saudi Arabia to stabilize prices.
Futures in New York gained as much as 4.1%, after advancing 3.2% in Monday’s session. U.S. Energy Secretary Dan Brouillette said that a joint U.S.-Saudi oil alliance is one idea under consideration to steady the market after the worst crash in a generation. The market was also supported by a second wave of initiatives by the Federal Reserve to support a shuttered American economy. However, a rally in other risk assets such as equities was soured by a second failed effort by Congress to agree on a stimulus bill.
Oil has lost 46% in March alone as the coronavirus outbreak brings economies worldwide to a standstill. The severe demand shock has dimmed traders’ outlooks for consumption, with some estimating a collapse of as much as 20 million barrels a day this year. IHS Markit estimates oil demand in the second quarter alone will contract by 14 million barrels per day.
Crude rose for a second day after the U.S. signaled it was open to the possibility of an alliance with Saudi Arabia to stabilize prices.
Futures in New York gained as much as 4.1%, after advancing 3.2% in Monday’s session. U.S. Energy Secretary Dan Brouillette said that a joint U.S.-Saudi oil alliance is one idea under consideration to steady the market after the worst crash in a generation. The market was also supported by a second wave of initiatives by the Federal Reserve to support a shuttered American economy. However, a rally in other risk assets such as equities was soured by a second failed effort by Congress to agree on a stimulus bill.
Oil has lost 46% in March alone as the coronavirus outbreak brings economies worldwide to a standstill. The severe demand shock has dimmed traders’ outlooks for consumption, with some estimating a collapse of as much as 20 million barrels a day this year. IHS Markit estimates oil demand in the second quarter alone will contract by 14 million barrels per day.
No comments:
Post a Comment