UNITED STATES (OBSERVATORY NEWS) — Oil prices went down. After a tumultuous recovery last week, panic again seized the minds of traders. Stock indices are also rapidly declining.
The price per barrel of Brent mix fell below $ 57, with a drop of about 5% in just two trading sessions.
The main reason is the fear of a slowdown in the global economy amid the spread of coronavirus.
By the way, the epidemic is actively spreading already outside of Asia. So, in Italy, several deaths were recorded, and even canceled the last days of the carnival in Venice and several matches of the football championship.
Do not help the oil market and media reports about the readiness of Saudi Arabia to begin to reduce production without waiting for Russia.
The Wall Street Journal claims that the Saudis have already agreed to cut production if a decision on coordinated action is not taken at the upcoming two-week OPEC summit.
However, the sources at OPEC called this information “insanity.”
Meanwhile, even the American stock market, which in recent days has continued to grow and even updated historic highs, cannot resist the threat of coronavirus. But on Friday, indices lost from 1% to 2%. And today, futures for US indicators are losing another half percent.
Macroeconomic statistics also played a role. February business data showed that the US economy is on the verge of a recession.
Now investors are waiting for fresh data from the Middle Kingdom. So far, no statistics have been received on the market for the period when the Chinese economy was virtually paralyzed due to the virus.
According to experts, the data can be simply shocking.
This article is written and prepared by our foreign editors writing for OBSERVATORY NEWS from different countries around the world – material edited and published by OBSERVATORY staff in our newsroom.
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