- The magnitude of downtrend was soo chaotic that it can be judge by the very fact that the U.S. market just stopped trading to put a halt on falling prices.
- There was below $8k loss in bitcoin and -30% in oil prices, the biggest since the Gulf war of 1991. Its COVID-19 again or some other factor?
It was really a bloody Monday for every field of market. The stock market, bonds, oil prices, and cryptocurrency dived quickly. The magnitude of downtrend was soo chaotic that it can be judge by the very fact that the U.S. market just stopped trading to put a halt on falling prices.
It leaves everyone shell shocked by what happened that led to such sudden crisis in the market. There was below $8k loss in bitcoin and -30% in oil prices, the biggest since the Gulf war of 1991. Its COVID-19 again or some other factor?
The reason that took everything sideways was the Sell-off that happened due to Russia, who refused to follow other big oil players in reducing output. The global market is assuming that it will be getting worst as Saudi Arabia is going to make his move by boosting the supply of crude oil and slash prices in the upcoming month.
One can predict how messy it will be by the following reasons:-
- Oil price descent by more than 20%.
- US indexes opened 6% lower.
- Bitcoin dropped by 10%.
Going onto the depth of coronavirus and oil price factors:-
It all started on Friday with the fact that fear of coronavirus will give rise in the demand for fuel and producers won’t pull the trigger on price cut. It was so serious that it declined as much as 11% in afternoon trading only. For the record, it was the biggest daily decline since 2008.
This all happened after the broke down of communication between Russia and Saudi Arabia. Saudi Arabia requests for outputs cuts, in response to COVID19 that is levitating a price war, which would hammer prices but it was refused by the Russian officials.
Therefore, Saudi Arabia’s masterstroke will be his plan to present an opportunity for a heavy discount to the United States, European nations and Asia next month.
Russia really made everyone venerable globally as the Stock price is falling,
- In Europe, Royal Dutch fell to 15%, and there is a fall of 55% in Premier oil.
- In Asia, there is a fall of 10% in major players like Ningbo Construction. Jilin Sino-Microelectronics Manufacturing.
- In North America, there is a fall of 14% in Chevron, 10% in Exxon mobile, 6% in Apple and 11% in Tesla.