• 4 minutes Trump will meet with executives in the energy industry to discuss the impact of COVID-19
  • 8 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 11 minutes Why Trump Is Right to Re-Open the Economy
  • 13 minutes Its going to be an oil bloodbath
  • 1 min "Saudi Armada heading to U.S.", "Dumping" is a WTO VIOLATION.
  • 2 hours Cpt Lauren Dowsett
  • 53 mins Trump will be holding back funds that were going to W.H.O. Good move
  • 5 hours Death Match: Climate Change vs. Coronavirus
  • 31 mins Washington doctor removed from his post, over covid
  • 1 hour Which producers will shut in first?
  • 3 hours Free market or Freeloading off the work of others?
  • 4 hours ‘If it saves a life’: Power cut to 1.5 million Californians
  • 6 hours US Shale Resilience: Oil Industry Experts Say Shale Will Rise Again
  • 8 hours Ten days ago Trump sent New York Hydroxychloroquine. Being administered to infected. Covid deaths dropped last few days. Fewer on ventilators. Hydroxychloroquine "Cause and Effect" ?
  • 8 hours Russia's Rosneft Oil is screwed if they have to shut down production as a result of glut.
  • 6 hours How to Create a Pandemic
Editorial Dept

Editorial Dept

More Info

Premium Content

The Currencies Hit Hardest By Coronavirus

1. These currencies have plunged the most

- The pandemic has hit China, Iran, Western Europe and the U.S. the hardest. But falling oil prices and global economic stress has led to capital flowing out of emerging markets in a flight to safety.

- The currencies in Russia, Mexico and Colombia have all fallen 20 percent since the start of the year.

- The six oil-producing members of the Gulf Cooperation Council – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE – all have currency pegs that they need to defend, which means that while their currencies remain unchanged, the crash in crude prices will bleed them of foreign exchange. The GCC fiscal deficit will rise to 14 percent of GDP with oil prices at $30 per barrel, according to Bloomberg.

- Nigeria’s currency peg is one of the most unsustainable. Foreign exchange has declined by 20 percent since last summer to $36 billion, according to Bloomberg.

2. Big Oil’s dividends on borrowed time

- As share prices for the oil majors plunge, their dividend yields have spiked. All of the five majors – ExxonMobil (NYSE: XOM), Chevron (NYSE: CVX), BP (NYSE: BP), Royal Dutch Shell (NYSE: RDS.A) and Total (NYSE: TOT) have yields above 10 percent. Shell’s yield is approaching 15 percent, for example.

- “Nobody wants to be the CEO who cuts the dividend,” Noah Barrett, a Denver-based energy analyst at Janus Henderson Group Plc, told Bloomberg.…






Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News