Price Futures Group senior account executive Phil Flynn says he’s never seen a day like this for oil prices in his career. FOX Business’ Lauren Simonetti says after two strong weeks on the market, oil dragged down the major averages.
Get all the latest news on coronavirus and more delivered daily to your inbox. Sign up here.
Continue Reading Below
U.S. equity futures are indicating a lower open on Wall Street when trading begins on Tuesday.
The major futures markets are pointing to a decline of 0.3 percent.
U.S. crude has returned to positive territory trading at 10 cents, an increase of $37.73 from Monday’s closing price of -$36.73. It was at roughly $60 at the start of the year.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
On Monday, U.S. oil futures plunged below zero with storage for crude nearly full as demand collapses due to the coronavirus pandemic.
Traders are still paying more than $20 for a barrel of U.S. oil to be delivered in June, which analysts consider to be closer to the “true” price of oil. Crude to be delivered next month, meanwhile, faces a stark problem: traders are running out of places to keep it, as factories, automobiles and airplanes sit idled around the world.
Few traders are buying and selling U.S. oil to be delivered in May. When trading contracts for it expire on Tuesday, the earliest delivery they’ll be able to buy is for June.
Brent crude, the standard for international oil pricing, is down 42 cents to $25.17.
In Asian markets on Tuesday, Tokyo’s Nikkei fell 1.9 percent, the Hang Seng index in Hong Kong lost 2 percent and China’s Shanghai Composite gave up 1.1 percent.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 23650.44 | -592.05 | -2.44% |
| SP500 | S&P 500 | 2823.16 | -51.40 | -1.79% |
| I:COMP | NASDAQ COMPOSITE INDEX | 8560.728396 | -89.41 | -1.03% |
In the Monday session, the S&P 500 fell 51.40 points to 2,823.16. The Dow Jones Industrial Average lost 2.4 percent and the Nasdaq dropped 1 percent.
More recently, countries around the world have tentatively eased up on business-shutdown restrictions meant to slow the spread of the virus, which has killed more than 170,000 people and infected more than 2.4 million.
CLICK HERE TO READ MORE ON FOX BUSINESS
Health experts warn the pandemic is far from over and new flareups could ignite if governments allow a premature rush to ”normal” life. Many analysts also say some of the recent rally for stocks is based on overly optimistic expectations for a fast economic rebound once shutdowns end.
The Associated Press contributed to this article.
