Oil plummets to 13-month low as crude crash deepens

The crude oil crash just got worse.US oil prices plummeted nearly 7% on Tuesday to $53.43 a barrel. T...

Posted: Nov 21, 2018 2:10 AM
Updated: Nov 21, 2018 2:10 AM

The crude oil crash just got worse.

US oil prices plummeted nearly 7% on Tuesday to $53.43 a barrel. That marks the cheapest closing price since late October 2017.

Banking, finance and investments

Business and industry sectors

Business, economy and trade

Commodity markets

Continents and regions

Donald Trump

Energy and utilities

Energy commodities

Financial markets and investing

Government and public administration

Government bodies and offices

Middle East

Middle East and North Africa

Oil and gas industry

Oil prices

Political Figures - US

Politics

Saudi Arabia

Securities trading

Stock markets

US federal government

White House

Economic indicators

Economy and economic indicators

Energy and resources

Energy economic indicators

The latest deep selloff coincided with more mayhem on Wall Street. The Dow shed more than 600 points on Tuesday as fears about slowing earnings and economic growth deepen.

"In times of crises, all assets correlate," said Matt Smith, director of commodity research at ClipperData. "Crude has gotten caught up in the flight from equities."

In the span of just seven weeks, crude has gone from spiking to nosediving into a bear market. Fears of a new supply glut and weakening demand have wiped out 30% of its value since hitting a four-year high of $76 a barrel in early October.

Crude has sold off by about 7% twice in the past week. The November 13 decline of 7.1% was the worst in three years.

Beyond the stock market tumble, energy analysts saw few new reasons for the energy plunge.

"Oil traders are overwhelmed by bearish news," said Clay Seigle, managing director of oil at Genscape. "The broad selloff in equities has traders concerned about the possibility of an economic slowdown, which could reduce demand for oil products."

One new development may have also helped weigh on oil prices. President Donald Trump signaled on Tuesday he won't punish Saudi Crown Prince Mohammed bin Salman for the death of Washington Post journalist Jamal Khashoggi.

"It could very well be that the Crown Prince had knowledge of this tragic event -- maybe he did and maybe he didn't!" Trump said in a statement.

Energy traders may be interpreting the White House comments on US-Saudi ties as a sign that the kingdom won't aggressively cut oil production to support the market. Trump has repeatedly urged Saudi Arabia and OPEC not to do anything that will lift prices.

"If we broke with them I think your oil prices would go through the roof," Trump told reporters at the White House Tuesday.

He also said he was "not going to destroy the economy of our country" over the murder of Saudi journalist and Washington Post contributor Jamal Khashoggi.

OPEC is scheduled to meet next month in Vienna to weigh a potential output shift.

"You've got to think OPEC will be looking to make a sizable cut to try to reign in supplies and find a floor for prices here," said ClipperData's Smith.

Not long ago, OPEC was under pressure to ramp up output in a bid to avoid $100 oil. Traders feared a supply shortage caused by the Trump administration's sanctions on Iran, the world's fifth biggest oil producer.

However, the Trump administration took a softer approach on Iran than it initially signaled. Temporary waivers were granted to China, India and other buyers.

By that point, Saudi Arabia, Russia and the United States had already ramped up output, leaving the market with a potential glut. US production has been especially strong, driven by the shale boom in the Permian Basin of West Texas. US output alone is expected to spike by 2.1 million barrels per day in 2018.

At the same time, the global growth worries spooking Wall Street threatens to eat into demand. The International Energy Agency warned last week of "relatively weak" demand for oil in Europe and advanced Asian countries as well as a "slowdown" in India, Brazil and Argentina.

"The outlook for the global economy has deteriorated," the IEA wrote.

Minnesota Coronavirus Cases

Data is updated nightly.

Cases: 443562

Reported Deaths: 5918
CountyCasesDeaths
Hennepin921721468
Ramsey39534730
Dakota32680325
Anoka30733358
Washington19904223
Stearns17728184
St. Louis13503239
Scott1185394
Wright11519102
Olmsted1031671
Sherburne813664
Carver689336
Clay646678
Rice597866
Kandiyohi551571
Blue Earth536333
Crow Wing478173
Otter Tail451362
Chisago447932
Benton416085
Winona384546
Douglas371566
Nobles366346
Mower360127
Goodhue342857
Polk327056
McLeod322244
Morrison309343
Beltrami307446
Lyon299035
Itasca281543
Becker280638
Isanti280640
Carlton278042
Steele27019
Pine264413
Freeborn238720
Todd230529
Nicollet222636
Brown212634
Mille Lacs212145
Le Sueur207615
Cass204723
Meeker198233
Waseca188015
Martin168826
Wabasha16802
Roseau165216
Hubbard147638
Redwood138827
Renville136339
Houston133613
Dodge13244
Chippewa130732
Cottonwood125618
Fillmore12135
Wadena118214
Rock109412
Sibley10767
Aitkin106733
Watonwan10598
Faribault103814
Kanabec96818
Pennington96715
Pipestone93423
Yellow Medicine92614
Murray8625
Jackson85010
Swift83017
Pope7355
Marshall70115
Stevens6968
Clearwater68314
Lac qui Parle65416
Lake62615
Wilkin6219
Koochiching58410
Unassigned49468
Lincoln4811
Big Stone4523
Grant4257
Norman4218
Mahnomen4077
Kittson36819
Red Lake3154
Traverse2443
Lake of the Woods1771
Cook1130

Iowa Coronavirus Cases

Data is updated nightly.

Cases: 302245

Reported Deaths: 4203
CountyCasesDeaths
Polk45206441
Linn17616270
Scott15300161
Black Hawk13616228
Woodbury12927175
Johnson1198649
Dubuque11275148
Pottawattamie8896112
Dallas879569
Story860433
Webster467269
Cerro Gordo461966
Sioux453151
Clinton447161
Warren436237
Marshall425161
Buena Vista391129
Muscatine384375
Des Moines379140
Plymouth348667
Wapello340097
Jasper317855
Lee312528
Marion300452
Jones269149
Henry262630
Carroll252833
Bremer241648
Crawford227822
Boone215316
Washington213831
Benton207943
Mahaska190636
Jackson190531
Tama185357
Dickinson183526
Delaware171836
Kossuth170141
Clay165519
Wright162324
Fayette159022
Buchanan157820
Hamilton157728
Harrison153862
Hardin153729
Winneshiek153019
Clayton150448
Cedar150019
Butler146123
Page143515
Floyd137436
Cherokee137325
Mills135516
Lyon133332
Poweshiek131424
Hancock128524
Allamakee126327
Iowa122522
Calhoun12189
Grundy119422
Jefferson119123
Winnebago118029
Madison11789
Mitchell115034
Louisa114129
Cass112141
Chickasaw110511
Sac110115
Emmet109931
Appanoose109038
Union108122
Humboldt104219
Guthrie102124
Shelby101126
Franklin100918
Unassigned9180
Palo Alto9009
Keokuk84225
Montgomery84022
Howard82119
Monroe80418
Clarke7757
Pocahontas77211
Ida73730
Greene6867
Davis68421
Adair68220
Lucas6458
Osceola6349
Monona62916
Worth5943
Taylor5909
Fremont5025
Van Buren49412
Decatur4784
Ringgold4269
Wayne41421
Audubon4118
Adams2933
Rochester/St. Mary'S
Cloudy
27° wxIcon
Hi: 29° Lo: 28°
Feels Like: 16°
Mason City
Cloudy
24° wxIcon
Hi: 25° Lo: 24°
Feels Like: 11°
Albert Lea
Cloudy
25° wxIcon
Hi: 25° Lo: 23°
Feels Like: 16°
Austin
Cloudy
25° wxIcon
Hi: 27° Lo: 25°
Feels Like: 14°
Charles City
Cloudy
25° wxIcon
Hi: 27° Lo: 26°
Feels Like: 13°
A quiet weekend ahead
KIMT Radar
KIMT Eye in the sky

Latest Video

Image

John Marshall ready for 2021

Image

Is the City of Rochester paying men and women equally?

Image

LWVMN asks for "truth and consequences" for state lawmakers

Image

Sports Overtime Part 2

Image

Sports Overtime Part 1

Image

Plans for polar plunge

Image

Equal work and equal pay.

Image

Aaron's Friday Night Forecast

Image

Mega Millions jackpot soars to $750 million

Image

Increase in 2021 travel plans

Community Events