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Stock impact report

MORNING BID-Oil shock 2020 [Reuters]

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MORNING BID-Oil shock 2020 A look at the day ahead from EMEA deputy markets editor Sujata Rao. The views expressed are her own. The shock of sub-zero oil prices is still reverberating across world markets. U.S. crude futures are back in negative territory after briefly rising to around $1.40 a barrel. With COVID-19 related lockdowns in most countries likely to be extended or at least maintained in some form, physical demand for crude should remain low. Monday’s plunge was attributed to the Tuesday expiry of the May futures contract - traders had to try and dump the contract or be forced to take delivery of crude barrels for which there is no storage space. But as Deutsche Bank analysts warn, if demand doesn’t improve, this story may be repeated when June futures expire. Deutsche notes some lower quality crudes had already been trading near zero; one grade known as Wyoming Asphalt Sour actually fell last month to minus 19 cents a barrel. As for global markets, world stocks are down hal Show less Read more
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