How COVID-19 Impacted the Oil Price Collapse
- Author
- Things Have Changed
- Published
- Mon 30 Mar 2020
- Episode Link
- https://www.thc-pod.com/episode/how-covid-19-impacted-the-oil-price-collapse
Its just another Manic Monday!
The Bangles seem to have gotten the markets right these past few weeks...
Coming to the markets, there have been a a few records that have been broken by the Coronavirus-led Economy. We aim to paint a picture of the gravity of economic effects through the current environment.
- Highest weekly Unemployment claim - Americans displaced by the coronavirus crisis filed unemployment claims in record numbers last week, a surge to 3.28 million
- Historic Stimulus Package of $2 Trillion to provide a jolt to an economy reeling from the coronavirus pandemic
- Fastest 30% market sell-off ever, exceeding the pace of declines during the Great Depression
- 25 day Volatility on par with Great Depression (VIX)
- VIX new All-time high - new all-time highest VIX close on 16 March 2020 (82.69) and new all-time biggest close-to-close point increase (+24.86 from 57.83 to 82.69)
- Oil at Multi year lows of $20 - $1 today had the purchasing power of $0.70 in 2002, so the $20 per barrel oil today would equal $14 oil in 2002. New multi-year lows for crude oil. Fall in demand due to coronavirus creates surplus that risks overwhelming storage capacity. Add the OPEC Saudi - Russia Oil Price War if things weren't already historic.....
- Highest debt levels across the board but more notably, corporate debt closing at $13.5 Trillion at the end of 2019. In the past months, corporate debt levels are likely to see a spike. Even more interesting, the type of debt that is being issued. Over 51% of corporate debt is rated BBB, the lowest investment-grade type of debt there is.
Also some funny ones -
- Coronavirus might be spiking Divorce Rates! - Chinese city of Xi'an has seen a record-high number of divorce requests in recent weeks, with some districts even maxing out the number of appointments available at local government offices!
- Coronavirus Baby Boom?? - We can call them QUARANTEENS.... Get it?? QuaranTEENS!! okay we'll stop now.....
