RP Weekly Recap | April 13 – 17
Summary
WTI dropped to $17.31 early this morning, the lowest we have seen in over two decades with crude oil futures tanking nearly 10%. As the coronavirus pandemic continues to decimate global oil demand, the true impact of the virus has become largely economic.
BREAKING NEWS
- Crude oil futures tank nearly 10% as WTI slips to 21-year low at $18/barrel (Link)
- Of note is the dramatic spread in price between the May and June oil contracts ($7). Usually these spreads are less than $1 this close to the expiration of the current contract to the next. It will be interesting to see if the June oil contract holds up around the mid $20’s or if it tumbles next week when the May contract expires.
COVID-19 Updates
COVID-19 Statistics
- Number of Cases (Worldwide): 2,188,212 (up from 1,650,210 last week)
- Number of Cases (USA): 672,303 (up from 473,093 last week)
- Statistics (courtesy of Johns Hopkins)
COVID-19 News
- The death toll in Wuhan, the epicenter of the outbreak in China, was revised upward by 50 percent on Friday (Link)
Financial & Economic Updates
US Oil Market News
- U.S. Banks Prepare to Seize Energy Assets as Shale Boom Goes Bust (Link)
- Texas Oil Production Not Happening Yet (Link)
- U.S. Oil Drilling Grinds To A Halt At Key Shale Hotspots (Link)
- North Dakota Oil Producers Idle 25% of Wells (Link)
- ConocoPhillips is Slashing 27% of North American Production, Frac Crews to Zero (Link)
Global Market News
- Russia and Saudi Arabia Consider Even Deeper Oil Output Cuts (Link)
- Demand For OPEC Oil Falls To 30-Year Low (Link)
- Oil Prices Tumble after EIA Report Warns April Demand Collapsing to 25 Year Low (Link)
- Covid-19 to wipe out 10 million barrels per day of oil demand in 2020 (Link)
- Halliburton and Schlumburger Slapped with Multiple Downgrades (Link)
- Brazil Cuts Oil Production On 62 Offshore Platforms (Link)
Employment Updates
- Jobless Claims Surge to 22 Million in 4 Weeks (Link)
- Coronavirus Causes Mass Layoffs In Renewables Sector (Link)
US Rig Count Statistics (courtesy of Baker Hughes)
- (-73) in the last week
- Down 47.7% from one year ago
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