Pump jacks drill for oil in the Monterey Shale, California April 29, 2013. — Reuters pic
But some market participants believe the transformation of"black gold" into a liability is more than a bet gone wrong, and rather heralds a new round of deflation and financial destruction as the Covid-19 pandemic wrecks the world economy. The crash has already knocked the wind from a rebound rally that has taken the MSCI World Index up more than 20 per cent from March lows, sending Asian shares on their steepest tumble in a month and US stocks sliding two days in a row.
Trading losses can quickly spread risks outward to banks, who are likely to respond by lending less, he said. “Ultimately, this virus has to get fixed before oil can make any kind of recovery,” said David Winans, principal, US investment grade credit research at PGIM Fixed Income. While crude futures prices collapsed and millions of Americans have lost their jobs so far this month, the S&P 500 stock index has rallied over 20 per cent from last month's lows despite estimates for a recession sharper than the Great Depression.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Canada Canada Latest News, Canada Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Tokyo stocks open lower on oil price plunge | Malay MailTOKYO, April 21 ― Tokyo stocks opened lower today, tracking falls on Wall Street as investor sentiment worsened on plunging oil prices. The benchmark Nikkei 225 index was down 0.96 per cent or 188.84 points at 19,480.28 in early trade, while the broader Topix Index fell 0.94 per cent or 13.46...
Source: malaymail - 🏆 1. / 86 Read more »
US stocks open sharply lower amid pressure on oil market | Malay MailNEW YORK, April 21 — Wall Street stocks opened sharply lower today as the oil market remained under pressure and more large companies withdrew their earnings forecasts due to the uncertain economic outlook. About 15 minutes into trading, the Dow Jones Industrial Average was down 2.0 per cent at...
Source: malaymail - 🏆 1. / 86 Read more »
Russia orders companies to cut oil output by 20pc from Feb levels, say sources | Malay MailMOSCOW, April 21 ― The Russian energy ministry has told domestic oil producers to reduce oil output by around 20 per cent from their average February levels, two industry sources told Reuters yesterday, which would bring Moscow in line with its commitment under a global deal. The Organization of...
Source: malaymail - 🏆 1. / 86 Read more »
Chaotic overnight crude oil market sends ringgit lower at opening | Malay MailKUALA LUMPUR, April 21 ― The ringgit opened marginally lower today following a chaotic overnight session in crude oil markets which saw the US crude oil futures plunged to below US$0 for the first time in history. At 9.01am, the ringgit weakened to 4.3780/3880 against the US dollar from...
Source: malaymail - 🏆 1. / 86 Read more »