Business

Oil Down After Record Rally As Traders Question Trump’s Claim, Asia Stocks Struggle

Washington:

Crude prices plummeted on Friday following the previous day’s record surge as traders questioned Donald Trump’s claims that Russia and Saudi Arabia were ready to slash production, while the virus crisis led to an increase in US jobless claims. And struggled over the weekend after a severe surge. As the number of people with COVID-19 topped one million and the death toll continued to rise, investors remain hostage to uncertainty as they try to estimate the long-term economic impact of the epidemic, which is widespread Is expected to sink the planet in recession. .

However, with trillions of dollars pledged in government aid, the wild volatility that characterized the markets at the beginning of the crisis has provided some form of stability. And providing a much-needed shot in the arm on Thursday was a tweet from the US president stating that Moscow and Riyadh could slash output to end their vicious price war, which pushed crude oil prices closer to last month Was sent for two-decade. Trump said that he had spoken to Saudi Crown Prince Mohammed bin Salman, claiming that he had spoken with Russian President Vladimir Putin.



“I hope and hope that they will cut about 10 million barrels, and probably a lot more which if it does, would be great for the oil and gas industry!” Trump tweeted. “May be as high as 15 million barrels a day,” he added in a later post. The news sent crude rising, with Brent at one point rising nearly 50 percent and WTI nearly 35 percent. Brent eventually made a profit to finish 21 percent and WTI 25 percent, still a record jump for contracts. However, suspicion grew after the Kremlin refused to talk to the crown prince. Saudi Arabia, for its part, called for a meeting of other major producers, led by OPEC and Russia, to “stabilize the oil market”, just one day after the state raised supplies to record levels. “This could certainly be in view of the massive overplay of 25 million barrels a day,” said Magnus Niswane, head of analysis at industry consultant Ristad Energy.

He said the deal “sounds too good to be true”. Both main contracts gave back some of their profits on Friday. The equity market was tempered despite a healthy lead from Wall Street as traders absorbed data showing 6.7 million American workers applied for unemployment benefits last week, up from 3.3 million the week before as Coronavirus Had forced businesses to close their doors. And as health officials warn that the toll from the disease will worsen before the situation improves, experts are preventing further economic pain.

“With more and more investors turning their attention to the economic impact of the epidemic, these negative early indicators can weigh heavily on short-term risk assets, at least,” said Gorilla Trades strategist Ken Berman. At Franklin Templeton and Stephen Dover told Bloomberg TV, “We won’t make a real recovery in the market until we think the amount of infections and deaths is extreme. We’re going to continue to have very wide volatility. As long as we Can’t get out of this uncertainty. “

On Friday, the Asian Development Bank said the epidemic could cost the global economy more than $ 4 trillion – about five percent of production – as it devastated the United States, Europe and other major economies. The estimate was based on several scenarios, it was stated, but said the damage could be greater than “the worst epidemic in a century”. Asian growth rate has also come down to just 2.2 percent this year, the worst since the region’s financial crisis 22 years ago, while China’s GDP was tipped to expand to 2.3 percent.

Tokyo and Seoul barely moved, with Hong Kong dropping 0.6 percent and Shanghai by 0.6 percent. Sydney and Mumbai fell more than one percent, sinking more than two percent in Singapore and 0.4 percent in Bangkok. But Jakarta and New Zealand had benefits. In early trade, London, Paris and Frankfurt were all in negative territory. Stephen Innes at AxiCorp said, “The market is going through a common theme these days, which is gradually under threat in the COVID-19 environment on Friday.” “A favorable response to risk for a bottomless increase in jobless claims amid a lip-served prospect of a US-brocade oil supply deal between Saudi Arabia and Russia has meant both investor market conditions and the degree of ripe economic slowdown Happy in the cake. “


For all the latest business news, download News Nation Android And Ios Mobile apps.



Back to top button