Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Indexes  >  USA  >  S&P 500    SP500

S&P 500

(SP500)
SummaryQuotesChartsNewsHeatmapComponents 
SummaryMost relevantAll NewsNews of the index componentsMarketScreener Strategies

Oil plunges over 5% to 4-month low as pandemic surges, U.S. crude output soars

10/28/2020 | 01:50pm EST

* Rising COVID-19 cases and lack of U.S. stimulus hit oil prices

* U.S. crude stockpiles jump as output soars in record build -EIA

* U.S. dollar strengthens with more European coronavirus lockdowns

* Libya's production expected to rebound to 1 million bpd

* OPEC+ will have to deal with demand before raising output-Aramco

* U.S. Gulf Coast energy complex braces for another storm strike

NEW YORK, Oct 28 (Reuters) - Oil prices fell more than 5% on Wednesday, sending Brent to a four-month low as surging coronavirus infections in the United States and Europe prompted renewed lockdowns and fed expectations for new declines in fuel demand.

Also pressuring prices, U.S. crude stockpiles rose more than expected last week as production surged in a record build, according to the U.S. Energy Information Administration.

"The increase in oil production led to an unexpected build of crude oil, and given the additional lockdowns we are seeing in Europe, that is just further heaping bad news on the oil market," said Andy Lipow, president of consultants Lipow Oil Associates.

Brent futures fell $2.08, or 5.1%, to settle at $39.12 a barrel, while U.S. West Texas Intermediate (WTI) crude fell $2.18, or 5.5%, to $37.39.

That was the lowest close for Brent since June 12 and for WTI since Oct. 2. It was the biggest daily percentage losses for both benchmarks since Sept. 8.

Crude price declines mirrored downturns in other risk-asset markets, as U.S. stock indexes were all lower, with the S&P 500 down 2.9%.

The safe-haven U.S. dollar rose 0.5% on prospects of national lockdowns in Germany and France to fight the pandemic. The stronger dollar makes oil more expensive for holders of foreign currencies, which traders said weighed on crude prices.

The United States, Russia, France and other countries have registered record numbers of COVID-19 cases in recent days and European governments have introduced new curbs to try to rein in the fast-growing outbreaks.

Traders said crude prices were also hit by fading prospects for a quick deal on a new U.S. stimulus and increasing oil output from Libya.

On Tuesday, U.S. President Donald Trump acknowledged that a coronavirus economic relief package was unlikely until after next week's election.

Libya's production is expected to rebound to 1 million barrels per day (bpd) in the coming weeks.

The head of Saudi Aramco's trading arm said the Organization of the Petroleum Exporting Countries and its allies, together known as OPEC+, will have to contend with a "lot of demand issues" before raising supply as expected in January 2021.

"Between the United States and Libya, production is up almost 2 million bpd in the past couple weeks," said Robert Yawger, director of energy futures at Mizuho in New York, noting if OPEC+ takes the view that U.S. producers are only going to increase production, then OPEC+ may "unleash the 2 million barrels in January and let the chips fall where they may ... most likely crude oil down considerably."

The market, meanwhile, shrugged off this week's temporary decline in U.S. output as energy firms shut around half of offshore Gulf of Mexico production ahead of Hurricane Zeta, which will slam into the Gulf Coast later Wednesday. (Additional reporting by Noah Browning in London, Yuka Obayashi in Tokyo and Laura Sanicola and Laila Kearney in New York; Editing by David Gregorio, Marguerita Choy and David Goodman)


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
DJ INDUSTRIAL 0.13% 29910.37 Delayed Quote.4.67%
LONDON BRENT OIL 1.13% 48.24 Delayed Quote.-27.73%
NASDAQ 100 0.87% 12258.211779 Delayed Quote.40.37%
NASDAQ COMP. 0.92% 12205.846315 Delayed Quote.34.79%
S&P 500 0.24% 3638.35 Delayed Quote.12.62%
US DOLLAR / RUSSIAN ROUBLE (USD/RUB) 0.16% 75.975 Delayed Quote.22.05%
WTI 1.29% 45.54 Delayed Quote.-26.73%
All news about S&P 500
08:16aELON MUSK : Tesla's Delayed Semi Truck Tests Elon Musk's Ability to Scale Up
DJ
11/27Wall Street Week Ahead: COVID-19 vaccine adoption rates are 'wildcard' for U...
RE
11/27SALESFORCE, DELTA AIR LINES, BEST BU : Stocks That Defined the Week
DJ
11/27Stocks at record high but yields fall, dollar under pressure
RE
11/27Stocks at record high but yields fall, dollar under pressure
RE
11/27Wall Street gains, Nasdaq hits record high
RE
11/27Wall St. gains, Nasdaq hits record high as holiday shopping begins
RE
11/27WALL STREET STOCK EXCHANGE : S&P 500, Nasdaq End Week at Records
DJ
11/27For the week, the s&p 500 unofficially added 2.27%, the dow unofficially gain..
RE
11/27Nasdaq hits record high as holiday shopping begins
RE
More news
Chart S&P 500
Duration : Period :
S&P 500 Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends S&P 500
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Top / Flop S&P 500
ETSY, INC. 160.55 Delayed Quote.10.66%
CARNIVAL CORPORATION & PLC 21.58 Delayed Quote.4.50%
ILLUMINA, INC. 317.03 Delayed Quote.4.29%
TRACTOR SUPPLY COMPANY 139.37 Delayed Quote.4.09%
VERTEX PHARMACEUTICALS 226.71 Delayed Quote.3.95%
NATIONAL OILWELL VARCO, INC. 13.15 Delayed Quote.-3.31%
COMERICA INCORPORATED 51.49 Delayed Quote.-3.40%
HESS CORPORATION 50.77 Delayed Quote.-3.44%
ZIONS BANCORPORATION, N.A. 39.46 Delayed Quote.-3.64%
DIAMONDBACK ENERGY, INC. 43.52 Delayed Quote.-4.12%
Heatmap :