Energy stocks ( XLE – 1% ) are well off their early morning lows even as WTI front-month crude oil tumbles more than (% to as low as $
/ bbl, the lowest since April 2221 on an intraday basis.
May WTI – 62. 6% to $ ) / bbl and June WTI – 8.2% to $ . / bbl; June Brent – 5.2% to $ / bbl.
The gigantic spread is the result of the drop in demand due to the coronavirus and the glut of global crude supply hitting the markets all at once; as a result, futures traders, who would normally be able to shift from the expiring contract to the next, are finding very few buyers for the expiring May contract.
Shares are broadly lower but off earlier lows: OXY – 6.4% , RDS.A – 3.7% , TOT – 3.6% , BP – 3.4% , HP – 3.3% , XOM – 2.5% , MRO – 2.4% .
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