Price War Wipes $196 Billion From Energy Stock Values in a Week - Bloomberg:
Record lows, trading halts, capitulation and spending cuts made for a wild week in the energy sector after Saudi Arabia and Russia embarked on a war for market share, sending crude and equity prices in a downward spiral.
The S&P 500 energy index never recouped the stunning losses it saw at the beginning of the week, despite the late-day surge in U.S. stocks Friday on optimism for increased coronavirus testing. The sector plunged 24% in its biggest weekly decline since October 2008, outstripping the 8.8% loss in the benchmark and cementing its place as the worst-performing group for the past 5 trading sessions. The group lost about $196 billion in market capitalization this week through Friday’s close, according to data compiled by Bloomberg.
“It’s hard to imagine a world where nothing changes after this,” Spiro Dounis, an analyst at Credit Suisse in New York said in a note to clients, who added that his midstream coverage broke “all the wrong kinds of records” amid the equity and oil rout.
Record lows, trading halts, capitulation and spending cuts made for a wild week in the energy sector after Saudi Arabia and Russia embarked on a war for market share, sending crude and equity prices in a downward spiral.
The S&P 500 energy index never recouped the stunning losses it saw at the beginning of the week, despite the late-day surge in U.S. stocks Friday on optimism for increased coronavirus testing. The sector plunged 24% in its biggest weekly decline since October 2008, outstripping the 8.8% loss in the benchmark and cementing its place as the worst-performing group for the past 5 trading sessions. The group lost about $196 billion in market capitalization this week through Friday’s close, according to data compiled by Bloomberg.
“It’s hard to imagine a world where nothing changes after this,” Spiro Dounis, an analyst at Credit Suisse in New York said in a note to clients, who added that his midstream coverage broke “all the wrong kinds of records” amid the equity and oil rout.
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