This Crude Oil market is seeing declines despite OPEC +’s recent major deal to cut output as oversupply in light of the fight against coronavirus that has halted most of the global demand for Crude Oil.
Monday, global Crude Oil prices fell to marks not seen since Y 1999 on concerns that US Crude Oil storage will soon be full or is full, while companies prepare to report the worst Quarterly earnings since the Y 2008 financial crisis.
WTI Crude Oil saw shocking losses as the week began on the excessively abundant supply, extremely low demand. There is no limit to the Southside to prices when inventories and pipelines are full.
The huge drop in gasoline demand that has resulted in prices at the US pump going for less than $1 gal at some locations.
Monday’s oil price losses were triggered by the May WTI contract expiry, which may indicate that a bottom in prices is close.
It is unlikely that Crude Oil prices stay low for long, they will drive back toward 30 or higher by the end of Summer as America opens up and The People return to the Open Road.
Monday, the major US stock market indexes finished at: DJIA -592.05 at 23650.44, NAS Comp -89.41 to 8560.74, S&P 500 -51.40 to 2823.16
Volume: Trade on the NYSE came in at 1.1-B/shares exchanged.
- NAS Comp -4.6% YTD
- S&P 500 -12.6% YTD
- DJIA -17.1% YTD
- Russell 2000 -27.3% YTD
HeffX-LTN’s overall technical analysis of the major US stock market indexes is Neutral/Bullish with a Very Bullish bias.
Looking Ahead: Investors will receive Existing Home Sales for March Tuesday.
Have a healthy day, Keep the Faith!