Tag Archives: oil market

Oil is up $80 in seven weeks. The remarkable recovery could be too good to be true | CNN

The oil market has rapidly recovered from its darkest day ever. US crude topped $40 a barrel this week. That wouldn’t typically be notable — but right now, that marks an $80 leap from its unprecedented trip below zero just seven weeks ago, when it hit a low of -$40.32 a barrel on April 20. Meanwhile Brent crude, the world benchmark, has more than doubled since mid-April.

The remarkable oil recovery is being driven by hopes of a sharp rebound in the world economy from the coronavirus pandemic that crushed demand for gasoline, jet fuel and diesel.

The oil comeback also reflects enthusiasm for record-setting production cuts by OPEC, Russia and their allies, plus the sharp pullback in output from the United States, the world’s leading producer.

Read More

Oil price will put US back in recession | Globes

Empirically, the US economy has entered a recession every time US national spending on oil has crossed the line of 4% of GDP. 4% of US GDP is equivalent to about $80 dollars a barrel. That means that if oil prices remain above $80, the US will enter a recession by year’s end.”

Read Article 

Thanks to Jon Medved for the original post: Ed