The Morning View: April 21, 2020

Senior Vice President / Portfolio Manager

Following yesterday’s historic price movements, WTI oil prices for next-month delivery remain under stress this morning. Prices for May futures contracts remain negative, while June futures contracts are near $15 per barrel. Both the lack of demand due to global self-isolating measures for COVID-19 and limited storage options due to oversupply concerns are contributing to the problem. Meanwhile, political leaders appear close to agreement on the next round of stimulus, including additional support for small businesses. The initial facility ran out of funding in recent days, highlighting the need for assistance across many industries as well as the speed which the program was put together. The timing and process of the re-opening economy will be important to ensure businesses, individuals, and markets will find the right accord moving forward. In all, bond yields and equity futures are lower this morning heading into the market open.









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