Archives of “March 20, 2020” day

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OPEC, US shale producers open talks amid oil rout: WSJ

  
  Analysis

Proposed US oil output cuts seen as way to help OPEC broker Saudi-Russia war truce

The Wall Street Journal is reporting, that OPEC US shale producers have opened up talks amid the sharp decline in oil prices. The proposed US oil output cuts are seen as a way to help OPEC broker a Saudi – Russia price war truce.
CLICK HERE to read the full report.
The current price of crude oil is trading at $23.18. That’s down $2.04 or -7.8%. The high price reached $27.89. The low extended to $22.39.

European shares close session higher

  
Analysis, Global Indices

German DAX, +3.0% France’s CAC, +4.3%, UK FTSE +0.1%

The European shares are closing the session higher, with the UK FTSE lagging:

  • German DAX, +3.0%
  • France’s CAC, +4.3%
  • UK’s FTSE 100, +0.1%
  • Spain’s Ibex, +0.9%
  • Italy’s FTSE MIB, +1.4%
After a few days of rising yields, the trajectory of rates push back to the downside across the board. German 10 year yields fell -12.8 basis points. UK yields fell by -17.2 basis points.
European 10 yields are down sharply

Russia says that oil prices are very unpleasant, but not a catastrophe for the country

  
Analysis, Crude
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Comments by the Kremlin

  • There is no price war between Russia and Saudi Arabia
  • Our relations are good and doesn’t think anyone should intervene
  • Says Russia has safety buffer against unfavourable oil prices
I would argue that you have to read between the lines with this one. The fact that the OPEC+ joint technical committee meeting was cancelled goes to show that both sides aren’t exactly on speaking terms right now, so believe what you will.
In any case, their official stance still shows no backing down just yet.

Top oil trader Vitol says the world might run out of available commercial storage in a couple of months

  
Analysis, Crude

The world’s largest oil trader, Vitol, shares their view on the oil market

Oil
  • Global oil demand could fall by more than 10% as lockdowns spread across Europe
  • Drop would be much higher if lockdowns start to take hold in the US
  • But that is currently not in their base case scenario
  • But if it does happen, “you can get as bearish as you like” on oil prices
  • Might run out of available commercial storage in a couple of months
  • Important now how much China buys into strategic stocks
A fair take on the current situation and on the commercial storage part, Vitol is assuming current OPEC production remains i.e. Saudi and Russia continue to do battle. Just some food for thought as we continue to look at how the virus situation develops across the world.

People with blood type A may be more vulnerable to coronavirus (China study)

  
  Analysis
  Tags

An ICYMI via the South China Morning Post

  • People with blood type A may be more vulnerable
  • those with type O seem more resistant,
Blood group patterns of more than 2,000 patients infected with the virus in Wuhan and Shenzhen
  • compared them to local healthy populations.
  • They found that blood type A patients showed a higher rate of infection and they tended to develop more severe symptoms.
  • researchers said the study was preliminary and more work was needed
  • “People of blood group A might need particularly strengthened personal protection to reduce the chance of infection”
An ICYMI via the South China Morning Post  

US stocks close higher but well off highs in volatile trading

  
Analysis, US Market
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Nasdaq was down -1.88% at the lows, and up 5.03% at the high today

The US stock indices are closing higher on the day but off the highs for the day. I guess you can say there well off the lows for the day too.  The NASDAQ index was down -1.8% at the lows, and up 5.03% the highs. It closed up 2.3%. The volatility is red hot.

The final numbers are showing:
  • The S&P index rose 11.29 points or 0.47% to 2409.39. The low price was at 2319.78, down -3.27% at the time. The high was at 2466.97, up 2.87% at the peak.
  • The Nasdaq index rose  160.73 points or 2.3% to 7150.57.
  • The Dow rose 188.27 points or 0.95% to 20087.19. The low price was at 19177.13, or down -3.63%. The high reached 20442.63, or up 2.73%.
A hugely volatile day for the US stocks.
The US stocks had a hugely volatile day
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