Oil price goes negative as demand collapses; stocks dip

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Oil futures plunged below zero for the first time on Monday as demand for energy collapses amid the coronavirus pandemic and traders sought to avoid owning crude with nowhere to store it.

Stocks were also slipping on Wall Street in afternoon trading, with the S&P 500 down 1.2%, but the market's most dramatic action by far was in oil, where benchmark U.S. crude for May delivery plummeted to negative $35.20, as of 2:30 pm. Eastern time. It was nearly $60 at the start of the year, before business-shutdown orders swept the world and idled factories, offices and automobiles.

Benchmark U.S. crude oil for June delivery, which shows a more "normal" price, fell 16.5% to $20.90 per barrel. Big oil producers have announced cutbacks in production in hopes of better balancing supplies with demand, but many analysts say it's not enough. "The government can declare whatever they want in terms of encouraging people to get out and do stuff," said Willie Delwiche, investment strategist at Baird. "Whether or not broad swaths of society do that remains to be seen. It's going to take seeing people start to get out and do stuff again. That will be the necessary positive development, not just declaring getting things open.

In a sign of continued caution in the market, Treasury yields remained extremely low. The yield on the 10-year Treasury slipped to 0.62% from 0.65% late Friday. It started the year near 1.90%. Bond yields drop when their prices rise, and investors tend to buy Treasurys when they're worried about the economy.

But health experts warn the pandemic is far from over and new flareups could ignite if governments rush to allow "normal" life to return prematurely.

 

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Go to the pump...it's free now!!! RightL

And yet the gas prices are still .80 in Toronto. Oil is down to $18.00 today and dropping. So what’s the deal with the high prices?

Hey Alberta still want to separate

Well, congratulations, world wide movement of zero fossil fuels helmed by Gredo the Gremlin, your wishes have come to fruition.

Olive oil costs more

I wonder how the Saudi royal family are feeling today? 😎

Hydro electricity...

Holy Jumpin!

👀 -$38

So they’ll pay me to take some?

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