Oil prices jumped 40% at the high on Wednesday, recovering from early losses in a volatile overnight trading session that saw international benchmark Brent crude fall to its lowest level in more than 20 years.
Given oil’s more than 70% decline this year a smaller gain, of course, now accounts for a much larger percentage move. At the beginning of the year WTI fetched more than $60 per barrel, but the fall-off in demand caused by the coronavirus pandemic has sent prices tumbling.
On Wednesday President Donald Trump said in a tweet that he had “instructed the United States Navy to shoot down and destroy any and all Iranian gunboats if they harass our ships at sea.” CNBC’s Jim Cramer said this could have contributed to oil’s surge higher as short sellers covered their positions.
I have instructed the United States Navy to shoot down and destroy any and all Iranian gunboats if they harass our ships at sea.
— Donald J. Trump (@realDonaldTrump) April 22, 2020
Wednesday’s move higher stood in sharp contrast to the wild downward price action in oil so far this week. On Monday, the WTI contract for May delivery plunged below zero to trade in negative territory for the first time in history.
MacDailyNews Take: The macroeconomic shockwaves from the COVID-19 pandemic shutdowns continue, as most observers expected, and as seen clearly in oil prices, but, demand will pick up a some point and things will smooth out. In the meantime, stay safe and healthy, everyone!
The short term story in the market remains oil. Yet, this is much bigger than oil. The price action over the last 48 hours not only points us back to the economy and demand side, but is showing signs of spillover and contagion in risk toward other markets. — Gregory Faranello, head of U.S. rates trading at AmeriVet Securities
This week investors are realizing that even though the crisis could soon get better, the negative impacts of having an economy which is essentially shut down are magnifying at an alarming rate. With no demand even for a couple of months, energy prices go negative as excess oil supplies balloon. — Jim Paulsen, chief investment strategist at the Leuthold Group
Hurray! War will drive oil prices back up! Just what we need right now. :/
trump is not fit to be president. The guy just is not able. Enough!
If you can look at trump and see someone that is competent, you should question you own competence. Really.
“shoot down boats”, now I’m sure we know what he meant, the problem is what he said. A direct order such as this can’t be followed. The other problem is he doesn’t know how to say,” i meant to say ..”, he considers that weak. trump would have to keep correcting himself all the time. He doesn’t grasp the fact that he does not know. The gut is such a putz.
trump is responsible for the death of those people that took hydroxychloroquine at his insistence. It is as if he was setting by their bedside, pills in hand, and told them, ‘this will save you’, and placed the pills in their mouth and gave them a sip of water. Knowing trump, he would argue the sip of water is what killed them, then he would say, “I’ve heard that water kills if you sip it”, or “some doctors say the water kills you”, or some other demented thought. The guy is a fool. If you are supporting this fool, let me be clear, birds of a feather flock together. Can you imagine, or imagine if you will, your last thought being president trump told me I would be ok if I took this hydoxychloroquine, then dying.
PEOPLE LISTEN CAREFULLY, YOU HAVE ONE LIFE. STAY HOME, STAY AWAY FROM OTHERS BEST YOU CAN, FORGET WORK, FORGET ECONOMY, CAUSE IF YOU DIED, THEN WHAT?
think if we were being bombed everyday and the only concern is how to get you back to work instead of how to stop the bombing and keep you safe and living. the guy is a fool.
If you are so important to keep the economy going your death does not help the economy. Are you to risk your life so a company makes a few more dollars. What is your life worth? 8, 10, 15, 20, 30, 100, 1000, dollars an hour. Once you are dead what good is that money? You died, the insurance that the mortgage company made you carry pays off the house, so they get rich, you get, dead. Credit, don’t worry about it, we are all in the same boat. Banks will always want to loan money. You have all seen the commercials, “no credit, no problem, come get your new car today”, or ” no payments until 2000 some seemingly way in the future date.” BUT … No life, no chance of …
You remind me of those memes; Don’t be like Bob.
Trump was responsible for the recent economic drop, 2008 and the Great Depression. I think he had something to do with starting WW2, as well.
I have indigestion today because of Trump. You too, BOB?
Hey, Simon. And trump cares about you.
Have I always wondered about fracking vs offshore drilling? I even read the vital information at https://supremestudy.com/fracking-vs-offshore-drilling and it didn’t give me an exact explanation of why Oil prices jump. I think it’s worth doing some research and getting more reliable information.