#OilPrices #OilPriceSlump #WTICrude Today is Monday 20th April 2020 and yesterday we published
A video entitled:
Why Haven't Gold & Silver Prices Skyrocketed Yet?
and on Saturday our
our gold and silver weekly update for the week ending 17th April.
We highlighted in both of these and particularly in yesterday’s video why gold prices, though having performed well have not reached those levels many were hoping for and pumpers fantasise about. We also highlighted why silver will continue to lag gold at least in the short term and we have placed links to both of these in the description box below.
Now the time of producing this video podcast is 13.00 GMT+1 and the main news this morning is the dramatic fall in oil prices especially WTI Crude which at this moment the may contract is down $5.42 at $12.85 while Brent currently is down $3.95 at $26.97 – its been quite a while since we’ve noticed this disparity.
So, let’s take a look at two articles published on Bloomberg in relation to this:
At present most European markets are down around the 1% mark while Asian markets closed down a similar percentage in most but not all cases.
The dollar index has strengthened 0.20 and is just shy of 100 at 99.98 and gold is unchanged at $1685 though it was down some $23 at one stage and silver is down 1 cent at $15.20 though it too was down some 14 cents earlier
Its important to remember that for many industries low oil prices are beneficial especially for haulage companies and those reliant on goods transportation, not forgetting mining too. However, the US Shale and Oil Industry is so vast and employs so many people, these prices are ruinous for those companies, and they do make up a reasonably sizable part of the various stock market indices.
To add to the pain is the fact that we are now entering companies reporting seasons and with oil demand down with OPEC and the IEA (International Energy Agency) forecasting even lower consumption forecasts its not going to be difficult to predict that these figures will be disastrous.
Germany was already on the brink of recession partly due to the Trade tariffs with China and EU/US trade tariffs looming. Japanese exports declined the most in nearly four years in March as U.S.-bound shipments, including cars, fell at their fastest rate since 2011. And we have already reported on what has been happening in the UK and Europe.
According to Reuters this morning:
The oil industry has been reducing output swiftly to counter an estimated 30% decline in fuel demand worldwide.
Production cuts from OPEC and allies including Russia will take effect from May. The OPEC+ group has agreed to reduce output by 9.7 million bpd.
Officials in Saudi Arabia have forecast global supply cuts from oil producers could total nearly 20 million bpd, but that includes voluntary cuts from the likes of the United States and Canada, which are unable to turn production on or off in the way that most OPEC nations can.
So, no end in sight and perhaps even lower prices on the horizon. Of course, such prices cannot last at these levels for ever, but that said, it will be a brave man or woman to predict where the bottom will actually lie.
Thank you so much for listening and if you haven’t already done so please subscribe to our channel and press the bell sign so that you are notified of videos as and when they are published.
Not forgetting that we update our Richard and Greg channel every other day and so if you haven’t done so please subscribe to that one too and another update will be published later today.
We trust and hope that you have an enjoyable and safe weekend.
Important Links and videos:
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Bullion Vault – Buy Gold & Silver
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Trump for President 2020 YouTube Channel
The Impacts of Monetary Policy in the 21st Century:
- (US & World)
- (UK)
The New Silk Roads: The Present and Future of the World
- (US & World)
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Stack Silver Get Gold:
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