Another historic market plunge sent crude down 10% (WTI now below $29) while the DJIA lost 3000 points. The Brent-WTI diff closed at a mere – $1.35. On Sunday, the Fed used the last of its conventional monetary ammunition to counter the economic crisis triggered by COVID-19. It cut its short-term interest-rate target a full percentage point to near zero. It is unclear how long rates will remain this low but while these moves can not help us avert an economic crisis, they can keep it from becoming a financial crisis. The economy\u2019s fate is now in the hands of medical professionals and fiscal policy, stemming the outbreak or \u201cflattening the curve\u201d as well as getting money into the hands of the US consumer. The demand drop for crude oil is entirely unprecedented and still most analysts and traders are not willing to call a bottom anytime soon. WTI traded down 3.03 or -9.55% to close at $28.70. Brent traded down $3.80 or -11.22% to close at 29.79 analysts and traders are not willing to call a bottom anytime soon. WTI traded down $3.03 or -9.55% to close at $28.70. Brent traded down $3.80 or -11.22% to close at $29.79<\/p>\n\n\n\n
Another historic market plunge sent crude down 10% (WTI now below $29) while the DJIA lost 3000 points. <\/p>\n","protected":false},"author":2,"featured_media":297,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[26],"tags":[],"class_list":["post-400","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-petroleum-daily"],"yoast_head":"\n