Oil Prices are giving up gains and turned lower after Apple will miss its second-quarter forecast for revenue. They pointed to supply issues for iPhones and lower sales in China as the coronavirus shut down factories and stores.
Markets are back on the defensive after a risk-on day. The main reason is the numbers game. The number of reported cases of the novel coronavirus (Covid-19) said from China, that is.  China, because of a new way of counting.
Oil funds started to pile on to the short side of crude after more than a 20% drop as they all of a sudden realized that we saw oil demand destruction of historic nature. Today Goldman Sachs downgraded China’s GDP growth forecast to 5.2% from 5.8%.
Oil is coming back in a classic turnaround Tuesday fashion as the market is starting to realize that a 22% correction in the price might be a fair assessment of the demand destruction created by the coronavirus so far.
So much for the "emergency” OPEC plus meeting. The cartel can’t seem to get Russia to believe there is an oil oversupply emergency even after a 22% price correction in response to demand destruction created by the coronavirus.
Oil prices can’t shake the coronavirus. Oil prices are weaker even after OPEC got Russia to finally agree to a production cut.
The oil price was surging on reports that the coronavirus might not be as deadly as feared, and a vaccine may be on the way, as well as China lifting some quarantines.
The OPEC technical meeting disappointed oil traders because OPEC and Russia failed to announce a real number on its expected production cut.
The World Health Organization (WHO) says that there is no pandemic when it comes to the coronavirus. There may be no pandemic in global stock markets as well.
Massive amounts of Chinese stimulus into the system and talk that Saudi Arabia is mulling a temporary one million barrel a day production cut is giving hope to global markets.