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Crude Oil Slumps Towards Lowest Price Since 2003, Fuelling Fears Of Global Recession

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Crude Oil Slumps Towards Lowest Price Since 2003, Fuelling Fears Of Global Recession

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On March 18th, the price of crude oil hit a 17-year low as it continues its way down, amid fears that the coronavirus lockdowns could lead to a global recession.

U.S. crude was down 84 cents, or 3.12%, at $26.11 a barrel by 0822 GMT, having earlier fallen to $25.83 a barrel, the lowest since May 2003.

Crude Oil Slumps Towards Lowest Price Since 2003, Fuelling Fears Of Global Recession

Click to see full-size image

Brent crude was trading down 37 cents, or 1.29%, at $28.36 a barrel by 0650 GMT, after dropping to $28.05, the lowest since early 2016.

Crude Oil Slumps Towards Lowest Price Since 2003, Fuelling Fears Of Global Recession

Click to see full-size image

“The oil demand collapse from the spreading coronavirus looks increasingly sharp,” Goldman Sachs said in a note forecasting a fall in the price of Brent to as low as $20 a barrel in the second quarter, a level not seen since early 2002.

Goldman Sachs also expects a demand contraction of 8 million barrels per day (bpd) by late March due to the pandemic and an annual decline in 2020 of 1.1 million bpd, which it said would be the most on record.

Iraq’s oil minister pleaded for an emergency meeting between members of the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC producers to discuss immediate action to help balance the oil market.

Iraqi oil minister, Thamer al-Ghadhban, asked OPEC to help “urgently achieve” extraordinary meetings of the OPEC+ group to “discuss all possible ways” to rebalance the oil market.

“A deeply imbalanced supply and demand relationship will keep putting oil prices under pressure,” said Margaret Yang, analyst at CMC Markets in Singapore.

“Major oil producers are ramping up oil supply in a time when global demand is dampened by border controls and traffic bans.”

Meanwhile, Russian state lender Sberbank says that it has already been looking into worst-case scenarios for the economy amid the coronavirus pandemic. According to Sberbank CEO Herman Gref, the most stressful outcome includes oil going down to $20 per barrel and Russia’s national currency tumbling to 100 rubles per dollar.

Russia is struggling, as the ruble continues losing value.

At mid-day on March 18th, the ruble sits at 78.46 for $1.

Crude Oil Slumps Towards Lowest Price Since 2003, Fuelling Fears Of Global Recession

Click to see full-size image

Iran’s economy is also in a slump, with even more US sanctions being introduced, it attempting to counter the coronavirus, and its oil export sector suffering from both the lowering prices, as well as Washington’s sanctions.

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  • Jake321

    Where are all the Putz Putin the Poisoner Trolls and their butt buddy neo-Nazis saying the all power Putz’s Ruble will replace the USD and rule the world?

    • Lone Ranger

      Bye bye Shale oil ;)
      Keep crying and raging.
      Here is an XXL Tampax for you in the meantime…👻
      Prepare for another tanking on the stock market.
      $ will fall within months, maybe weeks ;)

      • JIMI JAMES
        • Lone Ranger

          So?

      • Jake321

        Why should I care? I have no interest in shale oil except that buying gas for my car will be way cheaper. And ever since Trump got elected I cashed out and now have most only cash and gold. Oh, and Apple I got years ago at $1.75 a share. And you?

        • Lone Ranger

          Apple just lost 30% of its value.
          More to follow…
          Shale industry gives work to 1.5million people, add the service sector and transportation connected to it thats another 3-4million.
          Potentially 5-6 million people could lose their jobs together with their families thats 20million people.
          But since you are a heartless sociopath you dont care as long as you have everything you need.
          Even I feel for these poor folks more than you which is pretty telling…
          Have a nice day and watch your stocks lose their worth…
          Reckoning is here…
          Bye.

          • Jake321

            You can’t read. I said I am most all in cash and gold and I got my Apple stock at $1.75 a share. It dropped 30% to well above $200 a share. So damn, I’m only up some 10,000%. Oh woe is me. And as I noted, the US shale industry is being bailed out but your quickly sinking RF has no one to bail it out. But maybe China will help if you give them Siberia which they have had eyes for for centuries.

          • Lone Ranger

            FED wont be able to bail out everybody.
            That $1trillion is only a drop in the sea of debt.
            Aside from that even that is risking a runaway hyperinflation.
            The more $ you print out of thin air the higher the chance for it…
            Russia is basically debt free with $570billion of reserves, they dont have to be bailed out by anybody.
            Few days ago you told me gold was a bad investement now its good…Im glad you acknowledge it now ;)
            I can read just fine, that crash wont stop anytime soon.
            Stockmarket lost 35% its value in less than two weeks.
            Your apple stocks will be worth less than toilet paper in a month if nothing changes.

    • Lone Ranger

      Gold backed Yuan and IMF credits will replace it by the way…
      Hopefully Trump will send those $1000 checks before they get worthless…

      • Jake321

        LOL…as the US Dollar strengthens and your already near worthless Ruble takes a dive off the cliff. Already, your long term interest rate are almost 10 times higher than the US.

        • Lone Ranger

          USD is toast we both know that.
          Once the Dow hits 16,000.
          The $ will go belly up.
          Its getting artificially boosted because thats the only thing between it and total collapse.
          But it wont work this time.
          $1trillion is nothing compared to the debt bubble.
          And printing more will cause a runaway hiper inflation.
          Ruble is adjusting itself.
          Like it did in 2016.
          High interest rates are actually a good thing, a sign of a healthy economy.
          FED tried to raise it multiple times but they couldnt go above 1% and now its zero and will turn into negatives soon.
          The closer you are to zero or even below it means you are toast and running only on fumes.
          Better luck next time Shlomo ;)

          • Jake321

            LOL…just like last time. The US Dollar got stronger because no matter how bad it was for us, it was worse elsewhere. And do note that the Russian real GDP has fallen almost a third over the past several years along with the value of the Ruble. If we step on doo doo, you fall into the cesspool.

          • Lone Ranger

            I guess thats why Russia has a 12% debt to GDP ratio while the U.S. a 130% soon a 140% lolz…
            Bye ;)

          • Jake321

            Just checked with the homeless dregs living on the street. Like Russia, they have very little debt.

          • Lone Ranger

            Except homeless dont have $570billion in their safe.
            Better luck next time…

    • JIMI JAMES

      It will be multi polar currency and yuang is backed by solid gold,either way your finished flogged
      check out your canadian enviroment prom,crater in the ground,you seen nothing yet p00fta!
      Dirty aids infested wishfull stinktank,have just won the pathedic comment of the week flogged!
      WTI- CRUDE @ $24.78 going down,down,down,Power to peoples infdustries,way to go workers

      NY phaedokweer/lgbtq stocks,down,down,down,Fake,phoney and false stocks n shares,keboom!

      • Jake321

        Yep. Down, down go oil prices and oil exports and thus Putz Putin the Poisoner’s RF. There is always a silver lining.

    • Wayne Nicholson

      Other than a few vitamin D deficient trolls who live in their mothers basement no one has ever suggested the ruble would replace the USD.

      What people have been saying is that this “oil price war” will lead to the collapse of US shale oil ….. which looks likely as long as the price remains below $60 bbl for the year. They can hunker down and survive as long as the price of oil goes up before their bonds come due which are well beyond junk status already and approaching radioactive toxic waste status.

      The other problem with crashing oil prices / demand is US banks get a percentage of every barrel of oil sold in USD. This revenue is now a fraction of what it was even a week ago at a time where everyone is scrambling for liquidity.

      The Shale oil companies could get bailed out with funny money ….. along with the bond market, too big to fail corporations like Boeing and GE, and the $trillions to be given to consumers. They are walking the tightrope between runaway inflation and runaway deflation right now with confidence that they can print money without causing panic the only thing keeping the markets from coming apart at the seams.

      Were in uncharted territory right now. No one can predict what this crash in demand will do to the world economy. What you don’t seem to understand is that over a few weeks the USA will experience more deaths than they did during the entire second world war. Up to 70% of the USA will become infected, at least 16% of those infected will require hospitalization and best estimates are 3% of those infected will die and while the majority of those deaths will be over 65 or in bad health people as young as 20 will die too. There is going to be massive unemployment for years as this virus keeps circling the globe in waves …. the second wave is already hitting China. Air travel, tourism, going out and partying and everything related are done for the foreseeable future.

      • Harry Smith

        You nailed it buddy! Just want to add that massive unemployment will increase the crime rate drastically.

        • Jake321

          And Russians will be too sick and bombed out to work and commit crimes. But look on the bright side. It might bring your sky high murder rate down. But your world class high suicide and alcohol death rates will sky rocket.

        • FlorianGeyer

          And the millions of 3rd world migrants running from US wars of choice now in US and EU will only make the crime explode :)

          • Jake321

            Actually, in times of national crisis in the US the crime rate falls. But it for sure will increase the already sky high suicide and alcohol death rates in Russia.

      • Jake321

        LOL…Only in your delusional wet dreams, Igor. We will get sick from this. You will die. Our private shale oil industry will be easily bailed out. Your government, exports and economy are based on the price of oil. You have no one to bail you out. Already, your bonds are near junk and have interest rates near 10 times higher than ours. The already near worthless Ruble has taken a dive off the cliff. And you have also begun the Pandemic.

        • Wayne Nicholson

          Bravo …. If you’re auditioning for the role of supervillian you nailed it

          https://www.youtube.com/watch?v=bDHpVNxbl50

          • Jake321

            Just telling it like it is and will likely be for the RF.

          • Wayne Nicholson

            But you didn’t say anything …. you just attacked me personally then ranted. This is you’re opportunity to tell us why Russia will fail and the USA will prevail and all you got is spit and venom.

  • Lone Ranger

    Bye bye shale oil and Petrodollar…
    Say hello to the Pedrodollar…;)

    • Jake321

      Bye bye Putz Putin the Poisoner and his RF. How will the folk in Siberia say hello in Mandarin?

      • Lone Ranger

        Ni hau…
        Russia and China are allies ;)
        They together and the rest of the Free World is putting an end to the U.S. Empire now.
        Stockmarket is below 20,000 now, and in free fall…oy gevalt…;)

        • Jake321

          LOL…the sickly Russian mouse says he’s an ally of the Chinese elephant who has wanted so to graze in Siberia. As an aside, I cashed out when Trump got elected. Just kept my gold and Apple stock I bought at $1.75 a share. And you?

          • Lone Ranger

            Thats a lot of crying ;)
            Russia and China are best buddies now.
            80% of Chinese military tech is from Russia or built under license.
            They are both member of the AIIB and the SCO.
            Mega Projects like gas delivery and civilian reactors are o going worth $hundreds of billions.
            Russia is running a massive trade surplus with low debt and a flat income tax rate of only 12 %.
            Wehehe.
            Stock up on Xanax and zoloft comrade, you will need it ;)
            Bye.

          • Jake321

            LOL…sure. Russia and China are best buddies. The folk in Siberia better start learning Mandarin.

          • Lone Ranger

            You better start learning spanish ;)
            Or as Bush would say it Mexican…

          • Jake321

            And what major chunk of the US is going to Mexico did you say? Damn, you don’t yet understand that the RF is a sick mouse compared to the Chinese elephant which is looking for more and richer grazing lands. But it’s OK for you. You’re a linguist and can learn Mandarin easily.

          • Lone Ranger

            Russia has never been more powerful than it is today.
            Russia and China are brothers in arms.
            On the other hand Commiefornia is already Cartel territory ;)

          • Jake321

            Says the sickly mouse about his equal ally the elephant. Do note that one step or one crap, bye bye RF.

          • Lone Ranger

            You spelled the U.S. Empire wrong again…;)

  • Lone Ranger

    CIA trolls and ukropnazis will cry and rage…👻

  • Lone Ranger

    The weaker the Ruble the more the oil profits, the stronger the USD the less the profits.
    Was the same in 2016 ;)

    • Jake321

      LMFAO…now that is quite the delusional sour grapes, Ivan.

      • Lone Ranger

        Hard facts Shlomo.
        Happened the same way in 2016 and Russia came out in top that time too…

        • Jake321

          LOL…Russia’s real GDP is down about a third since then. And the Ruble is falling off a cliff. And wait till the Pandemic Panic also hits Russia real soon. You better stock up on your Vodka ration while you still can. You will need every last drop to drown your sorrows.

          • Lone Ranger

            Russia at least has a real GDP.
            Unlike the debt bubble in the U.S.
            I told you so but you didn’t believe me.
            Now its here.
            Russia will be fine, they have universal healthcare and twice the hospital bed numbers compared to the U.S.
            Aside from that they closed down the Chinese border months ago.
            Thats why the number of cases are very low.
            I dont drink much but when I do its Martinis and sweet white dessert whines ;)
            Have a nice afternoon.

          • Jake321

            LOL…a “real” Russian GDP valued in worthless Rubles? You are truly funny. You closed your borders too late. It’s there and you will be on the geometric upward slope in two weeks. As you watch your Ruble and export revenues and economy go down the oily slope. Your thankfully dead Russian Soviet Empire butt buddies await you down there in the dustbin of history.

          • Lone Ranger

            You are Projecting ;)
            But say hello to adolf when you see him downstairs, when the U.S. Empire will join the Third Reich…
            Bye.

          • BMWA1

            Zero deaths

    • FlorianGeyer

      Correct, and more roubles in an economy that imports little from the West, due to US sanctions is a benefit for the Russian people who buy goods made in Russia.

      • BMWA1

        Yes but some people do not understand math! Including US State D.

        • Jake321

          Was Mugabe your elementary school arithmetic teacher, Einstein?

      • Jake321

        LOL…were you the financial and economic advisor to Mugabe?

    • BMWA1

      For RU state budget yes . But for Russian expat lifestyle, bad!! Win-win.

  • Wayne Nicholson

    “fuelling fears of a global recession”

    No shit sherlock. “recession’ is definite the “fear” is is the total collapse of the global financial system followed by a decades long depression.

    Central bank printing presses are running at full capacity, the USA is considering giving everyone cash to save businesses from the demand side shock.

    Given that just last week Trump was ready to cut off 700k people from food stamps after giving the rich tax cuts just a couple of years ago … how panicked do you have to be to propose giving those same people thousands of dollars to spend on consumer goods?

    The vision of giving ‘welfare queens” cash to spend on big screen TV’s in a last ditch attempt to save capitalism would have been laughable just a week ago yet here we are.

    • JIMI JAMES

      Good man!

    • Jake321

      And if you think it is bad here, just watch Putz Putin the Poisoner’s RF going off the cliff…WEEEEEEEE…the Russian Soviet Empire has open arms and kisses on both cheeks to welcome them at the bottom. No social distancing in the dustbin of history. Bye bye…

  • JIMI JAMES

    Good keep going fellas,the world needs to revolve around productivety,not stagnate to justify sas
    middle east specialists killing innocent farmers at point blank,george w bush you fkn dirty maggot cuk,
    venegance is comming,hight tide parasitic nwo/nazi/blurded petro dollar flog,there will be no symphathy not for your,nor your banksters,nor your tyrants,nor your incest,nor your facists and facists,Truth Time!

  • valpura

    Uhm someone is calling for a pre-emptive strike on its oil plants

  • Lone Ranger

    Dow is in free fall ;)

    • Jake321

      As is the Russian market, the Russian Ruble, the price of Russia’s most important item, oil. And very soon, so will be the Russian economy and then Putz Putin the Poisoner and his RF.

      • Lone Ranger

        Unlikely, the weaker the Ruble the more the oil profits…
        Aside from that with a reserve of $570billion they are well stocked whatever comes.
        Unlike the U.S…
        Dont forget to cash in that $1000 check Trumpf money before it gets worthless ;)
        Bye.

        • Jake321

          LOL…your wet dream hopes reign eternal. Again, if we step in the doo doo. You will take a dive into the cesspool. Bye bye…

  • valpura

    SF are you telling us that for 17 years we overpaid oil up to 500% its real value funding terrorist organizations that allowed endless war (that helped keeping oil prices high)?

    Nahhhhhhh can’t be possible…

  • Jake321

    The Ruble is down to more than 80 per US Dollar…and falling fast. As are oil prices, Russia’s export revenues, government revenues which rely on oil revenues and very soon, it’s economy. And this before they are hit hard by the Coronavirus. Damn, how is Putz Putin the Poisoner going to continue with his Greater Russia Follies and new arms race with the US?

  • PZIVJ

    With current oil production levels, if demand destruction reaches 20%.
    Oil not consumed will reach 20 million barrel per day, over a months time 600 million barrels will need a place to be stored! This is the reason for the price crash. No reaction from OPEC yet !

    • Jake321

      And the oil price will go BELOW ZERO! How’s that going to look on the Russian budget books that require a price of $40 a barrel to be balanced? When the US needs to borrow, people around the world fall all over themselves to buy our debt. That’s why our interest rates are near zero. But who in their right mind will lend the Kremlin money? That’s why their interest rates are nearly 10 times ours and why the Ruble is falling off a cliff. Oh, and it will mean the collapse of Russia’s export revenues which are two-thirds to 75% from oil and gas sales. And that with the Pandemic means the Russian economy tanks. And on top of that, when the Dems win in November, they will take vengeance on Putz Putin the Poisoner and his RF. After that, the folk in Siberia will likely need to learn Mandarin.