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All three key indices drop sharply. At the same time, US light oil (WTI) traded with delivery in May at negative prices.
WALL STREET: A very sharp drop in oil prices and the coronavirus are hitting the US stock exchanges on Monday.
Ted Shaffrey / AP
published:,
US Stock Exchanges USA Decline week begins after US light oil price USA It has fallen sharply. At the same time, the development of the coronavirus also affects the market.
The price of US light oil (WTI) with May delivery collapsed on Monday night. For the first time in history, the price dropped to less, ending at $ -18.65.
“The moves in the oil markets are unreal and happening now that we are literally running out of storage space,” Peter Boockvar, chief investment officer at Bleakley Advisory Group, said in a memo, according to CNBC.
This is how the day ended in the American exchanges:
- Dow Jones fell 2.46 percent
- The S&P 500 fell 1.80 percent
- Nasdaq fell 1.03 percent
Think bankruptcies are the easiest way out
The movements in the price of oil are related to the delivery contracts in May that expire on Tuesday. This, together with a sharp decrease in oil demand and the increase in oil reserves lead to the decrease.
– Rystad Energy has long warned against single-digit prices for WTI oil and even the possibility of turning negative. Now that we have reached this limit, the logical next step will be to abandon oil and bankruptcy, says Dickson.
In a recent Dickson comment, half an hour later, he says it’s like “explaining something that is unique and unreal” regarding the oil producers who now pay to get rid of the oil.
– And what does that mean? Such costly stops or even bankruptcies can now be cheaper for some operators, instead of paying tens of dollars to get rid of what they produce, Dickson says.
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US oil USA It is below zero, therefore prices are plummeting
Netflix went up before the report
Back on Wall Street, Netflix was one of the few winners on Monday’s exchange. The energy giant, which presents quarterly figures on Tuesday, was up 3.44 percent.
So far this year, the company is up more than 30 percent, while the stock market is down. The trend stems from the fact that various experts believe that energy services can make good money with people around the world who are forced to stay home during the crown pandemic.
Amazon also rose on Monday, albeit more modestly. The e-commerce giant, which releases numbers next week, has an advantage as Netflix during the pandemic. In addition to the sale and delivery of goods and services, the company is important in home delivery of food in the United States through Whole Foods.
