Oil prices plunged early Monday on renewed fears of a prolonged slowdown in demand and an even greater glut in supply.
Prices of Brent crude, the benchmark for global oil prices and for U.S. gasoline, had fallen as low as $22.63 a barrel as of Monday morning, down 17% from Friday. The price of West Texas Intermediate, or WTI, the bellwether for U.S. shale oil production, also fell about 6% to roughly $20 a barrel.
The price drops came on the heels of President Trump’s decision Sunday to extend the country’s social distancing guidelines another 30 days – meaning that Americans and U.S. businesses will almost certainly need to continue following the practices as late as April 30. Trump had previously said that he’d hoped to see some businesses resume normal operations as early as Easter on April 12 – a prediction that was roundly criticized by health experts.
“That recommendation effectively stymies American oil demand by putting a lid on gasoline and jet fuel consumption,” said Ellen Wald, president of Transversal Consulting and a senior fellow at the Atlantic Council Global Energy Center.
Meanwhile, adding to the downward pressure on prices, Saudi Arabia on Monday morning announced that it plans to step up its oil exports in May. The move is being driven by the reduction in domestic demand – due to the kingdom’s own social distancing practices to slow the spread of coronavirus – and the completion of new power plants that burn natural gas instead of oil, Wald said.
The developments – and the resulting crash in prices – promise to prolong the pain for U.S. shale oil producers. The sector needs WTI prices to be, on average, more than twice as high as they are now – at least $46 a barrel – to turn a profit, according to a quarterly survey published last week by the Federal Reserve Bank of Dallas. The bank called the results the “bleakest since the survey’s inception” in 2016.
Saudi Arabia, the world’s No. 2 oil producer behind the US. and the top oil exporter, triggered the crash in oil prices earlier this month. The kingdom slashed prices and ramped up production in a move widely seen as aimed at Russia, after the Kremlin declined to renew an agreement with Saudi Arabia and OPEC to cut oil production to help shore-up global prices.
President Donald Trump has fired one of two Democratic members of the U.S. Surface Transportation Board to break a 2-2 tie ahead of the board considering the largest railroad merger ever proposed.
Ford is recalling more than 355,000 of its pickup trucks across the U.S. because of an instrument panel display failure that’s resulted in critical information, like warning lights and vehicle speed, not showing up on the dashboard.
Nvidia reported a 56% increase in second-quarter revenue and a 59% rise in net income compared to a year ago.
The Rev. Al Sharpton is set to lead a protest march on Wall Street to urge corporate America to resist the Trump administration’s campaign to roll back diversity, equity and inclusion initiatives. The New York civil rights leader will join clergy, labor and community leaders Thursday in a demonstration through Manhattan’s Financial District that’s timed with the anniversary of the Civil Rights-era March on Washington in 1963. Sharpton called DEI the “civil rights fight of our generation." He and other Black leaders have called for boycotting American retailers that scaled backed policies and programs aimed at bolstering diversity and reducing discrimination in their ranks.
President Donald Trump's administration last month awarded a $1.2 billion contract to build and operate what's expected to become the nation’s largest immigration detention complex to a tiny Virginia firm with no experience running correction facilities.
Netflix CEO Ted Sarandos claims audiences don't want to watch Netflix movies in theaters, but that seems not to be the case recently.
Chipmaker Nvidia is poised to release a quarterly report that could provide a better sense of whether the stock market has been riding an overhyped artificial intelligence bubble or is being propelled by a technological boom that’s still gathering momentum.
Cracker Barrel said late Tuesday it’s returning to its old logo after critics — including President Donald Trump — protested the company’s plan to modernize.
Low-value imports are losing their duty-free status in the U.S. this week as part of President Donald Trump's agenda for making the nation less dependent on foreign goods. A widely used customs exemption for international shipments worth $800 or less is set to end starting on Friday. Trump already ended the “de minimis” rule for inexpensive items sent from China and Hong Kong, but having to pay import taxes on small parcels from everywhere else likely will be a big change for some small businesses and online shoppers. Purchases that previously entered the U.S. without needing to clear customs will be subject to the origin country’s tariff rate, which can range from 10% to 50%.
Southwest Airlines will soon require plus-size travelers to pay for an extra seat in advance if they can't fit within the armrests of one seat. This change is part of several updates the airline is making. The new rule starts on Jan. 27, the same day Southwest begins assigning seats. Currently, plus-size passengers can pay for an extra seat in advance and later get a refund, or request a free extra seat at the airport. Under the new policy, refunds are still possible but not guaranteed. Southwest said in a statement it is updating policies to prepare for assigned seating next year.
