Oil prices tumbled for a fifth day on Thursday to their lowest level in more than a year, as new reports of novel coronavirus cases outside China spurred investor fears that the rapidly spreading outbreak could slow the global economy.The futures have resumed trading and are punching through to new lows on virtually every tick:
Brent crude LCOc1 dropped $1.25, or 2.3%, to settle at $52.18 a barrel, off the session low of $50.97 a barrel, which was the lowest since December 2018. West Texas Intermediate (WTI) futures CLc1 sank $1.64, or 3.4%, to $47.09, after hitting their lowest level since January 2019.
Earlier this week, for the first time since the outbreak erupted, the number of new coronavirus infections reported outside China exceeded new Chinese cases.
Other risk markets also slumped on Thursday. The S&P 500 suffered its biggest one-day point loss since August 2011 and the Dow Jones Industrial Average marked its biggest-ever one-day point drop, as investors fled to the safety of assets like Treasury bonds and gold. The slump in global equities has wiped out more than $3 trillion in value this week.
The World Health Organization warned on Thursday that no country should make the mistake of assuming it will be spared from the virus, as governments from Iran to Australia raced to contain the epidemic’s spread.
“Oil is in freefall as the magnitude of global quarantine efforts will provide severe demand destruction for the next couple of quarters,” said Edward Moya, senior market analyst at OANDA in New York....MORE
Brent $50.26 down $1.92
WTI $45.68 down $1.41.
Note the February countertrend rally on both charts: The first bounce is usually not the best bounce.
Something to keep in mind if one goes long equities on Monday.
Be nimble, be quick, don't burn your butt on the candlestick.
