Forex Marketz Daily Forex News – Fully Markets Update
Overnight, the U.S. West Texas Intermediate (WTI) spot crude oil contract fell to an 18 year low price point. Demand for the black gold continues to vanish as the Covid-19 pandemic brings the global economy to a halt.
Traders are also watching the Organization for Petroleum Export Countries (OPEC) as well as non-member nations, led by Russia, are set to ramp up production as their supply cut deal ends at midnight.
The demand for oil has all but evaporated as the Covid-19 virus is forcing nations to shut borders, restrict travel and shutter businesses and industry. Oil derivatives, like gasoline and jet fuel, are simply not in demand and prices are falling.
The U.S. West Texas Intermediate crude contract shed 6.6 percent overnight to close at $20.09 per barrel. This was its lowest price level since February 2002. This contract had shed nine percent earlier in the North American trade session and was, for a time, below $20 per barrel.
The international Brent crude oil futures contract gave up 8.7 percent to close at $22.76 per barrel. This was its lowest price point since 2002.
Crude Oil Traders now Turn to OPEC and Russia
The de-facto head of OPEC, Saudi Arabia and Russia are engaging in an all-out price war. The Middle Eastern nation is set to ramp up pumping and cut prices after the now defunct OPEC + pact could not reach an agreement on further production cuts at the start of the month.
Demand is already falling off the cliff and at midnight April 1, OPEC will increase production. OPEC member nations will now be able to pump as much as they want and sell at prices they deem necessary.
Traders Monitor Covid-19 Cases and Closures around the World
Traders continue to anxiously monitor Covid-19 as it spreads throughout the United States. The U.S. is now the new epicenter for the global pandemic and the state of New Jersey has reported a sharp increases in new cases infections. The death toll has also risen.
The global pandemic has paralyzed economies around the world. Economists, at the International Monetary Fund (IMF), have now said that the global economy is in a recession. The IMF says that countries must enact massive stimulus spending to help with any recovery.
