Premarket: Oil crash hits world stocks, U.S. dollar gains as investors shun risk

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Premarket: Oil crash hits world stocks, U.S. dollar gains as investors shun risk GlobeInvestor

Global stocks fell on Tuesday, a day after U.S. crude oil prices turned negative for the first time, as dismal company earnings reports underlined worries about economic damage from the coronavirus pandemic.Story continues below advertisement

Monday’s historic plunge in oil, which saw some prices reach -$40 a barrel, is the result of growing crude stockpiles and a squeeze on storage space as lockdowns to contain the spread of the novel coronavirus slash global fuel use. First month West Texas Intermediate continued to trade in negative territory on Tuesday, at -$4.55 a barrel.

“But yesterday was a wake-up call and investors would be remiss to ignore that low oil means lower inflation, higher defaults, lower growth and more political instability as less petrodollars circulate in the system.”Australia’s central bank now forecasts the economy will shrink 10% in the first half of 2020 while South Korea is set for its biggest first-quarter contraction since 2008, with latest data showing exports plunging by almost a third in the first 20 days of April.

International benchmark Brent crude, more readily seaborne than its U.S. counterpart, fell to $22.61 per barrel.

 

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Oil price goes negative as demand collapses; stocks dipOil 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. 👀 -$38 So they’ll pay me to take some? Well, congratulations, world wide movement of zero fossil fuels helmed by Gredo the Gremlin, your wishes have come to fruition.
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