Oil Prices Plummet, WTI Accelerates Below $40 As Demand Fears Rise
On top of the Fed-described “extraordinarily uncertain” economic outlook, this morning's GDP data spooked oil prices lower and it appears $40 stops have been busted...
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While fears of a US resurgence of COVID have moderated modestly in recent days, the market remains caught between output cuts from some of the world’s biggest producers and anxiety over demand as Asian nations begin to see a 3rd wave.
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“Positive and negative factors still appear balanced on the oil market, with concerns about weak demand being offset by the voluntary OPEC+ production cuts,” said Eugen Weinberg, head of commodities research at Commerzbank AG.
This won't help the economy 'recover' as energy-related job losses transform from temporary to permanent.
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They are already permanent. The small unprofitable oil companies are bust and have been for a long time. Strangely this will help large cap oil in the long run and blow a hole in the energy bull that has been blown out of perspective for years now. I feel sorry for all those lured by the siren's call towards bankruptcy. Pulling oil out of the ground is less than half the battle. Only Exxon and other majors can do it at a profit and those wells will never be available to others.