Posted on 03/08/2020 3:21:01 PM PDT by Enlightened1
Stock futures tumbled in overnight trading Sunday as investors continued to brace for the economic fallout from the spreading coronavirus, while a shocking all-out oil price war added to the anxiety.
Futures on the Dow Jones Industrial Average plunged more than 900 points. The S&P 500 futures also indicated a 4% drop at the open on Monday. The sharp declines in the futures market pointed to more turbulence ahead after a roller-coaster week that saw the S&P 500 swing up or down more than 2.5% for four days straight.
Saudi Arabia on Saturday slashed official crude selling prices for April, in a sudden U-turn from previous attempts to support the oil market as the coronavirus hammers global demand. The move came after OPEC talks collapsed Friday, prompting some strategists to see oil prices crater to $20 this year.
“Crude has become a bigger problem for markets than the coronavirus,” Adam Crisafulli, founder of Vital Knowledge, said Sunday. “It will be virtually impossible for the [S&P 500] to sustainably bounce if Brent continues to crater,” he added.
International benchmark Brent crude futures plunged 30% to $32.05 per barrel. U.S. West Texas Intermediate crude fell 27% to $30.07 per barrel.
Investors have already been on edge about the coronavirus outbreak that caused major stock averages to tumble into correction territory. As of Sunday, global cases of the infections have climbed to more than 109,000 with at least 3,801 deaths around the world. The situation is also worsening in the U.S. with New York, California and Oregon all declaring a state of emergency.
(Excerpt) Read more at cnbc.com ...
The US really needs for oil to maintain a price that keeps shale in the black.
Not just for oil. Without shale, the natural gas glut will go away and that’s a very big deal.
Yes but will the lowering of gas prices make it cheaper to drill for Shale oil?
The Saudi production spike won’t last. Most of the oil revenues are pledged towards a cradle-to-grave welfare state far more generous than in Scandinavia. A 20% increase could lead to a 60% drop in price, and a huge drop in revenues. They pretty much need to limit their production to maximize revenues, or go into massive foreign debt to feed the welfare leeches who comprise the country’s population.
Could the DOW tumble be connected to nCV-19 posts here on FR?
And the rats and media cheer!
My first car was a 1952 Buick Super with straight-8 engine.
It was built like a tank. Good thing is I learned to drive on it, and ran into a few objects but no damage to the bumpers at all!
Duplicate post please remove
Thank you
This news happened before the post.
This thread came in 10 minutes (6:21pm) before the second duplicate (6:31pm). Here is the link to the duplicate and check out the time stamps.
Thanks
http://freerepublic.com/focus/f-news/3822793/posts
It’s all interconnected. The panic itself is another form of social media virus.
Thanks to our fracking, we can afford to put a tariff on imported oil.And probably we should do that.
We need not, and should not tolerate having our oil industry jerked around.
Try looking at the time stamps of the post FIRST before you call for a duplicate post to be removed.
Agree to off set it.
This makes all the anti-fossil fuel eco-nuts happy. Much less drilling production and use will help with their faux climate change arguments.
On the other hand, there goes New Mexico’s budget surplus. Our radical left-wing Dem governor raised the state budget by 8% in the legislative session that ended mid-February before the extent of Covid-19 became apparent and pumped lots of money into their favorite social welfare programs (education, early childhood support, health, etc.) all based on the price of oil being about $52 per barrel. We are now down to $30 and dropping lower. Rigs and production will drop, folks laid off, etc. Libs hate oil and gas but in NM income and royalities provide upwards of 35% of the state’s total revenue.
When oil the prices fall far enough the shale production will slow or stop. That will cause an increase in prices and when prices rise high enough shale production will again pick up.
It’s the marketplace. Supply/demand. Works every time.
Financial Visualizations:
https://finviz.com/futures.ashx
If you're being paid to write articles on the market then you have to make up shit in order to sound legitimate...........
we can afford to put a tariff on imported oil....
I agree. The sauds are taking a page from JD Rockefeller.
If the price of crude stays below $45 for an extended period, US frackers will close down.
Let the sauds try to give away their oil. There’s not much demand for it these days.
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