Oil plummets in worst week since 2008, pushing exploration outfits to the brink
Oil had its worst week since the financial crisis as panic over the coronavirus pandemic battered global markets.prompted U.S. Federal Reserve Chairman Jerome Powell to assure investors that the central bank is prepared to cut interest rates to mitigate the virus’ threat to economic activity. “A month ago the concern was only China,” said Pavel Molchanov, energy research analyst at Raymond James & Associates Inc. “This meltdown is a fear of a global pandemic. The risk is we will see the same disruptions we saw in Asia, from travel restrictions to quarantines, materialize all over the world.” Advertisement Oil prices have tumbled almost 27% this year on concerns the coronavirus outbreak will dent crude demand. OPEC and its allies have signaled the coalition could reach an agreement to stem the rout before meeting in Vienna next week. Saudi Arabia is reportedly pushing for collective OPEC+ production cuts of an additional 1 million barrels a day, of which it would bear the brunt. However, Riyadh’s proposal may not be enough to balance the oil market, according to a coronavirus-scenario analysis by Bloomberg Intelligence analysts Salih Yilmaz and Rob Barnett. “We may be too far deep for any OPEC cuts to have a meaningful impact,” said Peter McGinn, market strategist at RJ O’Brien & Associates LLC. “If the virus keeps spreading, that is just going to keep hurting demand and cause another wave of panic selling. A production cut could give it a bounce, but these lows will persist for the foreseeable future without a vaccine.” The virus outbreak is forcing U.S. oil and gas explorers already burning through borrowed cash to the brink of distress. The stocks of U.S. explorers are on average worth just a quarter of their peak in mid 2014, when oil started plunging from more than $100 a barrel. The S&P Oil & Gas Exploration and Production Index has plunged 82% since. Advertisement This week’s sell-off exacerbated challenges facing distressed energy borrowers, which have been pressured by high debt loads, low commodity prices, disappointing earnings, and investors reluctant to keep financing them. High-yield energy borrowers have lost nearly 8% this year, compared to a loss of only 0.8% for the broad category of high-risk borrowers, according to Bloomberg Barclays data. Once at the vanguard of the U.S. shale revolution, Chesapeake Energy Corp. has fallen headlong toward collapse as it and rival drillers flooded the U.S. with excess natural gas, crushing prices and destroying billions of dollars in value. Chesapeake’s shares have all but evaporated in value, trading below 30 cents. It’s 11.5% bonds maturing in 2025 have plunged 28% this week to 57 cents on the dollar. The yield on the security, a measure of how much investors will demand in gains to take the risk of holding it for a year, has surged to almost 30%, about the same level as government bonds from troubled Lebanon. Whiting Petroleum Corp. stock is down 75% this year amid reports that the oil producer is holding discussions with advisers to review its capital structure. Whiting and Chesapeake are among the names that are “poorly positioned” if an economic downturn were to push oil to $40 a barrel and natural gas to $1.75 per million British thermal units, analysts at Scotiabank wrote earlier this week in a note to investors. Read more: Los Angeles Times
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Dow Jones Industrial Average slides 357 points on coronavirus fears to cap worst week since 2008After another bad day on Wall Street amid coronavirus fears, those who have money in the stock market may have lost money during this recent dramatic stock slump. the way the world economy has been constructed by traders and other plutocrats has made it far too fragile. it's based entirely on speculation. The China 🇨🇳 GOVERNMENT SUCKS Yup...my 401k 12/31/2018 at 540k, then 2/19/20 729k, now 660k. 😳🤢
Stock Market Continues to Plummet in Worst Week Since 2008: Live UpdatesPanic in the stock market over the coronavirus has continued into a 7th day. Shares in the U.S. tumbling following steep declines in Asia and Europe. Follow live updates: Follow the money Yawn Barely even begun...
Wall Street has worst week since 2008 as S&P 500 drops 11.5%Amid coronavirus fears, the Dow has now fallen to 25,409 — that's more than 4,100 points, or 13 percent, below the record high it hit on Feb. 12. Friday's drop wraps up Wall Street's worst week since the 2008 financial crisis. thankstrump Trump banned travel from Wuhan early on. Democrats said it was “too much” and “inhumane”. Then, they blame him even when America has suffered zero casualties. Lol That drop is normal since it’s coming from record highs. RealChrisTrue
World stocks set for worst week since 2008 as virus fears grip marketsAsian stocks tracked another overnight plunge in Wall Street's benchmarks with the markets in China, Japan and South Korea all posting heavy losses. It's just the beginning
Markets On Pace For Worst Week Since 2008 Crisis Due To Coronavirus PanicAll three indexes entered corrections territory Thursday.
U.S. stocks have worst week since 2008BREAKING: Dow Jones plummets nearly 1,200 points, more than 4%, as economic uncertainty over the spread of the novel coronavirus continued to rattle markets. Oh dang 🤣 get ready to make some money 😁 Here’s today’s date... It was a sham market before coronavirus. Don't use that as an excuse.