The week commencing Monday 20th and ending on Friday 24 saw volatility in the oil market continue with historic losses in US crude futures contracts.
MONDAY – United States crude benchmark West Texas Intermediate extended losses on Monday, falling by more than 35% to $11.24 per barrel, its lowest since 1998. The decline was mainly driven by a lack of storage space in addition to the covid19 pandemic which has ravaged demand for the commodity.
TUESDAY – According to Reuters, OPEC+ members are in talks to immediately execute the historic 9.7 million BPD output cut agreed on April 12 instead of waiting till next month. June WTI futures fell by more than 45% to less than $11 per barrel. Brent for June delivery dropped by over 25%, falling below $20 per barrel.
THURSDAY – The Labor Department said on Thursday 4.427 million more people applied for unemployment benefits for the first time last week, A record 26 million Americans sought unemployment benefits over the last five weeks.
US stocks closed higher as the US Senate approved its fourth relief package, worth $484 Billion aimed at helping small businesses cushion against the pandemic. an additional $310 billion to the paycheck protection program, $75 billion for hospitals, and $25 billion to boost COVID19 testing.
FRIDAY – IATA’s latest forecast is for a $314bn decline in airline passenger revenues in 2020, a 55% decline vs 2019. Elsewhere, the Eurozone headline composite PMI dropped further to a fresh record low in April, with the services sector worst hit compared to manufacturing.
Key Events this week
- Monday 27/04 – Bank of Japan (BOJ) meeting
- US Wholesale inventories Data
- Wednesday 29/04 – US Q1:2020 GDP report, Federal Reserve statement
- Thursday 30/04 – Europe Q1:2020 GDP, ECB interest rate announcement
- Friday – Exxon Mobil and Chevron to release their earnings results