Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

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

S&P 500

SummaryMost relevantAll NewsNews of the index componentsMarketScreener Strategies

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

10/28/2020 | 02:31pm EST
FILE PHOTO: The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County

NEW YORK (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. [EIA/S] [API/S]

"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. [/USD]

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)

By Scott DiSavino

© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
DJ INDUSTRIAL 0.62% 30141.63 Delayed Quote.4.71%
NASDAQ 100 0.40% 12524.726201 Delayed Quote.42.76%
NASDAQ COMP. 0.57% 12453.177495 Delayed Quote.37.63%
S&P 500 0.68% 3691.26 Delayed Quote.13.49%
All news about S&P 500
12:18pGold slides as stocks rally, but still set for weekly gain
12:17pGLOBAL MARKETS : Hopes for stimulus drive risky assets higher despite weak U.S. ..
11:53aWall Street at record high as dismal jobs data spurs stimulus bets
11:26aInvestors Circle Largest Corporate Cash Hoard Ever -- Update
10:32aThe Covid Crisis Taught David Farr the Power and Limits of Leadership
10:22aWALL STREET STOCK EXCHANGE : U.S. Stocks Climb as Investors Bet on Stimulus
10:19aEXPERT VIEWS : November US payrolls gain falls short, threatens recovery
09:49aWALL STREET STOCK EXCHANGE : U.S. Stocks Open Higher as Jobs Growth Slows
09:42aTAKE FIVE : The clocks are ticking down
09:41aWall St. opens near record highs as grim jobs data fuels stimulus hopes
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
Top / Flop S&P 500
DIAMONDBACK ENERGY, INC. 46.37 Real-time Estimate Quote.10.64%
OCCIDENTAL PETROLEUM CORPORATION 17.735 Real-time Estimate Quote.8.21%
TECHNIPFMC PLC 10.085 Real-time Estimate Quote.7.63%
EOG RESOURCES, INC. 51.835 Real-time Estimate Quote.7.61%
NATIONAL OILWELL VARCO, INC. 14.365 Real-time Estimate Quote.6.96%
XCEL ENERGY 66.07 Real-time Estimate Quote.-1.84%
HANESBRANDS INC. 14.125 Real-time Estimate Quote.-1.84%
ULTA BEAUTY 282.35 Real-time Estimate Quote.-2.48%
THE BOEING COMPANY 230.595 Real-time Estimate Quote.-2.78%
SEMPRA ENERGY 128.025 Real-time Estimate Quote.-3.02%
Heatmap :