The oil market is facing uncharted territory as the drop-off in demand






The oil market is facing uncharted territory as the drop-off in demand, caused by the coronavirus pandemic, combined with rapidly filling storage, sent prices plunging into negative territory for the first time in history. West Texas Intermediate crude for May delivery fell Monday more than 100% to settle at negative $37.63 per barrel, meaning sellers would effectively pay to have the oil taken off their hands. The contract expires on Tuesday, fueling the wild swing to the downside as traders scrambled to get out of their positions.
(CNBC)

Treasury yields fell on Tuesday as a stunning drop in oil prices raised concern about the global economy. The U.S. 10-year rate fell to 0.55%, hitting its lowest level since March. The 2-year yield traded at 0.189% while the 30-year bond yielded 1.129%. Tuesday’s decline in yields comes after U.S. oil prices tumbled below zero for the first time on record, with crude storage facilities filling rapidly and as the coronavirus crisis ravages demand.
(CNBC)

Source: Danareksa Sekuritas Debt Research

 

 

Image: Moscow, Russia.
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