The Dow Jones Industrial Average capped the worst week since 2011, finishing with a 100-point lurch in the final half-hour of trading, as equities tumbled around the world after crude extended declines below $58 a barrel.
January West Texas Intermediate $70 puts, which allow an investor to sell futures at that level, have soared more than 40-fold from two months ago as the U.S. benchmark has plunged almost $25 a barrel.
As OPEC is getting ready to meet next week in what will be their most important meeting in recent memory, it seems that global central bank actions may be doing some of the heavy lifting to support global oil demand expectations.
OPEC in its own “World Oil Outlook” reported that the demand for its oil in 2017 may hit only 28.2 million barrels per day, the lowest level since the year 2000 a time before the China economic explosion
As crude oil prices tried to bounce back from a five-year low, oil companies and OPEC try to adjust to low oil prices. BP earnings kicked off the big oil earnings season and they could have been worse.