NEW YORK (AP) — The Newest on motion within the monetary markets (all occasions native):
Oil costs had one other jaw-dropping skid Wednesday, sending the worth of U.S. crude oil beneath $21 a barrel for the primary time since 2002.
Benchmark U.S. oil misplaced $6.58, or 24.4%, to settle at $20.37 a barrel. Brent, the worldwide normal, dropped $2.85, or 13.4%, to shut at $24.88.
Traders are betting that demand for oil shall be down sharply as factories shut and as folks have postpone holidays and enterprise journeys so as to keep residence and reduce the chance of spreading the coronavirus.
These considerations of weaker oil demand have been heightened in latest weeks as economists have issued forecasts predicting that the financial fallout from the viral outbreak will push the U.S. right into a recession within the second quarter.
Oil costs have additionally been harm by massive producers partaking in a value conflict and refusing to ease again on what number of barrels of oil they produce, pushing costs decrease.
European markets closed with heavy losses Wednesday on considerations that the coronavirus outbreak will trigger much more lockdowns on companies world wide and put massive numbers of individuals out of labor.