Oil’s Crash Deepens in Tug-of-War Between Virus and Stimulus - Bloomberg:
Oil’s spectacular collapse deepened in early Asian trade on Monday as investors weighed measures by governments and central banks to help shore up the global economy against the unprecedented demand shock from the fast-spreading coronavirus.
Futures in London fell as much as 6% after plunging by a quarter last week -- the market’s biggest weekly drop since 2008. Travel restrictions across the globe tightened further over the weekend in efforts to contain the spread of the virus, with the U.S. extending its travel ban to include Britain and Ireland. Australia said anyone entering the country must self-isolate for two weeks, Spain imposed a lockdown and France closed cafes and restaurants.
The sharp slow down in activity brought on by the virus is being compounded by a potential flood of supply in April, with top producers Saudi Arabia and Russia pledging to ramp up production. The Middle East kingdom doubled down on the war for market share last week by sending a wave of crude to Europe, Russia’s traditional market, further dimming the likelihood of a reconciliation.
Oil’s spectacular collapse deepened in early Asian trade on Monday as investors weighed measures by governments and central banks to help shore up the global economy against the unprecedented demand shock from the fast-spreading coronavirus.
Futures in London fell as much as 6% after plunging by a quarter last week -- the market’s biggest weekly drop since 2008. Travel restrictions across the globe tightened further over the weekend in efforts to contain the spread of the virus, with the U.S. extending its travel ban to include Britain and Ireland. Australia said anyone entering the country must self-isolate for two weeks, Spain imposed a lockdown and France closed cafes and restaurants.
The sharp slow down in activity brought on by the virus is being compounded by a potential flood of supply in April, with top producers Saudi Arabia and Russia pledging to ramp up production. The Middle East kingdom doubled down on the war for market share last week by sending a wave of crude to Europe, Russia’s traditional market, further dimming the likelihood of a reconciliation.
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