Today’s Focus: Oil

Today’s Focus: Oil

Last week saw the biggest three-day rally since the Great Depression.. Oil's losing streak continued last week with Brent losing 4.6 percent.. Brent had lost 6 percent in the morning reaching 26.24 in early Monday morning trading.. The various stimulus packages, which were released last week, had a positive effect on the stock market.. On Friday, US unemployment numbers jumped by 3 million, which sent shockwaves around the world.. Closing down most economic activity and suspending air travel has resulted in a colossal supply-side shock.. Others estimate demand destruction to exceed 25 million bpd, depending how long the shutdown will last.. Several refiners reduced runs by 20 percent, which reflected in the 5 percent drop in China's Sinopec.. The current oil price has had a devastating effect on US shale oil producers and other higher-cost producers.. Broken is the only way to describe the current state of the oil market.. It will be hard for the usual OPEC+ attempts to balance the markets by cutting supply to gain traction as long as demand destruction is at current levels..