Dow Jones futures plummeted Sunday night in overseas trading, along with S&P 500 futures and Nasdaq futures, as an all-out crude oil price war adds to coronavirus fears. Trading in S&P futures was halted in overnight trading once levels hit the maximum allowed drop of 5%.
Demand destruction and unfavorable price spreads have caused an increase in loaded storage across various energy products.
“A cut from OPEC of even 1 million barrels a day would be supportive to
the market
Oil prices fell on Wednesday despite expectations that major
producers have moved closer to an agreement to enact deeper
output cuts.
Oil prices moved higher on Tuesday, but quickly came off session highs reached after the U.S. Federal Reserve cut interest rates in an emergency move designed to shield the world’s largest economy from the impact of the coronavirus.
As the coronavirus spreads across the globe analysts shown a
growing concern over if the production cuts to oil production would
offset the slide in oil prices.
Folks, it was a really bad week last week for commodities and equities – a historic sell off
Oil prices had their worst week since the financial crisis as coronavirus concerns ravaged commodity and other financial markets.
Despite a smaller than anticipated build in crude inventories and a drop in gasoline inventories, it is really all about the virus here. US commercial crude inventories grew by ~500K bbls, compared to a forecasted build of more than 2 million/bbls.
Transport Canada & Transport Minister Marc Garneau’s office approached the CN and CP to help negotiate the rail sharing deal to alleviate shortages of essential goods.