• 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
  • 3 mins "Saudi Armada heading to U.S.", "Dumping" is a WTO VIOLATION.
  • 43 mins Trump will be holding back funds that were going to W.H.O. Good move
  • 2 hours Cpt Lauren Dowsett
  • 5 hours Death Match: Climate Change vs. Coronavirus
  • 21 mins Washington doctor removed from his post, over covid
  • 51 mins 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
Alt Text

Trump Tweet Sends Oil Soaring 25%

Oil prices spiked on Thursday…

Alt Text

Oil Jumps As Markets Panic

Oil prices rose slightly on…

Michael Kern

Michael Kern

Michael Kern is a newswriter and editor at Safehaven.com, Oilprice.com, and a writer at Macro-Investing.com. 

More Info

Premium Content

Oil Falls Into $20 Range As The Fed Cuts Interest Rates To Zero

The Federal Reserve took yet another bold action on Sunday evening, announcing that the central bank would be slashing interest rates to zero percent. But the markets weren't impressed, with the Dow dropping over 2,000 points, and oil prices dropping as much as 10 percent.

In a surprise move by the Federal Reserve Sunday evening, the central bank announced that it will be cutting interest rates to zero percent and reactivating the crisis-era program of bond purchases known as "quantitative easing," in which the Fed buys billions of dollars in bonds to cut prices and keep markets flowing.

The move comes following another announcement last week stating that the Federal Reserve pledged to inject as much as $1.5 trillion into U.S. markets to cull the growing panic sparked by the Coronavirus pandemic.

Trump praised the Fed's action, stating “It makes me very happy, and I want to congratulate the Federal Reserve,” adding, “That’s really good news, that’s really great for our country. … I think people in the market should be very thrilled.”

Oil Can't Catch A Break

Despite the supposedly 'really good news,' oil markets failed to react positively. The price of WTI fell by 8 percent, and Brent dropped by as much as 10 percent following the announcement.

While the coronavirus continues to impact global stock markets, the oil industry is seemingly out against itself. It's abundently clear that the pandemic is impacting oil demand, yet instead of cooperating, the biggest oil nations on the planet are facing off in a price war. Related: Analysts See Oil Prices Staying In The $30s For Months

Russia, for its part, bailed on the OPEC deal, and essentially told other producers to open the floodgates...

And Saudi Arabia responded in kind, suggesting that it was ready to saturate the market with even more oil.

Other OPEC producers joined the free-for-all, with the United Arab Emirates upping its output to 3 million barrels per day, and Iraq adding thousands of barrels to the mix, as well.

By Michael Kern for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage






Leave a comment

Leave a comment




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