Stock Markets are heading for one of the worst opening in the history as the Coronavirus disease (COVID-19) spread fear among retail investors. DOW 30 futures have broken the recent low at the early trading of futures.
Uncertainty about the severity and duration of the COVID-19 outbreak, ripping around the world at something like light speed is causing the volatility in the markets recently.
The spiraling fears have caused financial carnage. The S&P 500 index has dropped 12 percent since Feb. 19, the sharpest dive in nine years. The plunge has obliterated roughly $3 trillion in wealth The New York Times reported.
Oil price to plunge as Saudis vow to step up production (Guardian)
Saudi Arabia, the world’s top oil exporter, will step up crude oil production from next month, flooding global markets and most likely depressing petrol and diesel prices, in response to Russia’s refusal to join an Opec plan to cut supplies.
State oil giant Aramco will boost its crude output significantly above 10m barrels per day (bpd) in April, after a previous agreement to limit supplies agreed by Opec and Russia expires at the end of March.
Sources inside Opec who have spoken to Reuters said the move is expected to involve 20% price cuts to customers, with an emphasis on targeting those that hold contracts with Russia.
A barrel of Brent crude has fallen in price since January by a third to almost $45 a barrel following the coronavirus outbreak. Prices dropped by almost 10% on Friday after news broke that the planned Opec deal had foundered.
On Saturday, Aramco slashed its official selling price for April for all its crude grades to all destinations. (Guardian)