Crude oil suffers longest losing streak since 1984

The boom-to-bust oil market has rapidly gone from spiking to crashing.US oil prices declined nearly 1...

Posted: Nov 10, 2018 7:10 AM
Updated: Nov 10, 2018 7:10 AM

The boom-to-bust oil market has rapidly gone from spiking to crashing.

US oil prices declined nearly 1% and briefly broke below $60 a barrel on Friday, tumbling deeper into a bear market.

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Crude closed lower for the 10th day in a row. That's the longest losing streak since July 1984, according to S&P Platts.

In barely a month, crude has plunged 21% -- and that's since closing at a four-year high of $76.41 on October 3.

Friday's low of $59.28 a barrel is the weakest price since February.

It's a stunning turnaround considering just a few months ago some analysts were warning that $100-a-barrel oil could be just around the corner, especially given the Trump administration's crackdown on Iran.

The oil slump has been sparked by a combination of forces.

First, the global growth fears that rocked the stock market spilled into commodities. Investors worried that an economic slowdown would eat into demand for energy.

"It's so amazing how fast sentiment shifts," said Michael Tran, director of global energy strategy at RBC Capital Markets. "The economic slowdown fears are winning the narrative."

And despite the recent Wall Street rebound, crude has continued to tumble. That's because oil bulls were disappointed by the Trump administration's decision to grant temporary waivers that allow India, China and other countries to continue to buy oil from Iran, the world's fifth-biggest producer.

President Donald Trump said the move was designed to ease the impact of sanctions on Iran, which took effect on Monday.

"We're going to let some of the oil go out to these countries that really do need it, because I don't want to drive the oil prices up to $100 or $150 a barrel, which could happen very easily," Trump said during a press conference on Wednesday.

Trump argued that prices have "come down very substantially" recently "because of me."

Yet the oil plunge is also due to Saudi Arabia and frackers in Texas ramping up production. US oil output, led by the Permian Basin in West Texas, raced above 11 million barrels per day in August for the first time ever. The United States recently surpassed Russia and Saudi Arabia as the world's largest oil producer.

The flood of production has helped lift oil stockpiles. Commercial oil inventories in the United States soared by 5.8 million barrels last week and are now 3% above the five-year average, according to the federal government.

However, RBC's Tran said physical demand for crude remains solid: "It's not that bad out there. It doesn't warrant a 20% decline."

The bear market for oil unnerved energy investors on Wall Street. Baker Hughes (BHGE) dropped 4% and Schlumberger (SLB) declined 2%.

But some analysts are warning the oil tailspin might be short lived. Goldman Sachs and RBC recently called for prices to rebound as the Iran sanctions waivers wear off.

And analysts are increasingly concerned Saudi Arabia and the United States have limited room to respond to future shocks.

Saudi Arabia is already pumping near record highs and the Permian Basin is growing so rapidly that it's running out of pipelines. Bottlenecks in Texas may not get cleared up until the second half of 2019.

"The risks are skewed to the upside through the end of the year," said Tran.

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 319381

Reported Deaths: 7354
CountyCasesDeaths
DeSoto22264265
Hinds20634421
Harrison18381316
Rankin13862282
Jackson13677248
Madison10234224
Lee10050176
Jones8458167
Forrest7821153
Lauderdale7257242
Lowndes6498149
Lamar633688
Lafayette6298120
Washington5418136
Bolivar4835133
Panola4663110
Oktibbeha466098
Pearl River4597146
Marshall4572105
Warren4440121
Pontotoc424973
Monroe4155135
Union415576
Neshoba4059179
Lincoln4007111
Hancock386087
Leflore3515125
Tate342386
Sunflower339391
Pike3366110
Alcorn324172
Scott319374
Yazoo314171
Itawamba305077
Adams304885
Copiah299766
Coahoma298383
Simpson298189
Tippah291568
Prentiss283561
Leake271774
Marion271280
Covington267083
Wayne264442
Grenada264087
George251951
Newton248563
Tishomingo231267
Winston229981
Jasper222148
Attala215073
Chickasaw210459
Holmes190374
Clay187554
Stone187433
Tallahatchie180041
Clarke178980
Calhoun174032
Yalobusha167840
Smith164034
Walthall135247
Greene131833
Lawrence131024
Montgomery128643
Noxubee127934
Perry126638
Amite126142
Carroll122330
Webster115032
Tunica108027
Jefferson Davis107833
Claiborne103030
Benton102325
Humphreys97533
Kemper96628
Franklin85023
Quitman81816
Choctaw79018
Wilkinson69332
Jefferson66228
Sharkey50917
Issaquena1696
Unassigned00

Alabama Coronavirus Cases

Cases: 547873

Reported Deaths: 11274
CountyCasesDeaths
Jefferson809141565
Mobile41984826
Madison35629523
Tuscaloosa26147458
Shelby25580254
Montgomery25075611
Baldwin21805313
Lee16248175
Calhoun14710325
Morgan14618285
Etowah14160362
Marshall12446230
Houston10757288
Elmore10292212
Limestone10179157
St. Clair10155250
Cullman9928200
Lauderdale9591248
DeKalb8963189
Talladega8455184
Walker7330280
Autauga7229113
Blount6937139
Jackson6905113
Colbert6406139
Coffee5622126
Dale4929114
Russell454541
Chilton4470116
Franklin430783
Covington4267122
Tallapoosa4127154
Escambia401180
Chambers3723123
Dallas3606156
Clarke352861
Marion3237106
Pike313978
Lawrence3124100
Winston283272
Bibb267664
Geneva257081
Marengo250665
Pickens236662
Barbour234559
Hale226678
Butler223771
Fayette217762
Henry193743
Cherokee187245
Randolph186944
Monroe179141
Washington170439
Macon162951
Clay160159
Crenshaw155157
Cleburne153144
Lamar146237
Lowndes142053
Wilcox127030
Bullock124242
Conecuh113230
Coosa111429
Perry108726
Sumter105732
Greene93434
Choctaw61725
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High pressure will continue to dominate our weather forecast through most of the work week. This will mean much more in the way of dry and hot weather will be the weather rule through our Friday. However, changes may be coming to our area for this weekend.
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