Mid-Week Review – April 22, 2020
The worst is yet to come for oil prices
Dashing hopes for some oil producers who may have thought negative prices were a weird quirk, the June WTI contract fell sharply on Tuesday. During intraday trading June contracts collapsed by more than 45 percent, falling close to $11 per barrel. The selloff demonstrated that the ruinous supply glut is not going away, and that the meltdown for the May contract was not just a bizarre anomaly, but representative of an acute state of oversupply in North America.
Trump directs Mnuchin, Energy secretary to create plan to support oil, gas industries
President Donald Trump on Tuesday ordered Energy Secretary Dan Brouillette and Treasury Secretary Steven Mnuchin to put together a plan to get funding to the struggling U.S. oil and gas industry as a historic sell-off in crude continued.
Why oil is still the most important price in the world
Whether you like it or not, oil is still the most important commodity in the world. Its price can tell us not only what’s really going on in the world economy right now but has a great influence on what could happen in the future. Right now, it is telling us that the world economy is in big trouble – a crisis not yet revealed in backward-looking economic growth figures.
Will oil’s price slump be worse for the economy than the effects of the coronavirus?
The prospect of cheaper gas at a time when most Americans are holed up at home is not much of a silver lining to the coronavirus pandemic. Energy analysts say there is little upside to the unprecedented plunge in oil prices that sent crude oil futures spiraling into negative territory on Monday, spooking Wall Street.
This article is part of COVID-19
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