With prices tumbling, the Organization of the Petroleum Exporting Countries) (OPEC) decided to cut oil manufacturing by 9.7 million barrels a day, which will become the most extensive single output reduction measure in history.
President Donald Trump has already claimed that the accord would save “hundreds of thousands of energy jobs” in the U.S. and will be “great for all.”
However, US stock futures decreased this morning. The Dow Jones Industrial Average futures pointed to an opening loss of around 300 points. S&P 500 and Nasdaq 100 futures also indicated opening declines for the two indexes.
This all started with Saudi Arabia and Russia’s disagreeing to a deal resulting in oil prices falling by more than 40% since early March this year. But many are hopeful that they will soon revisit the deal with the aim of coming to an agreement in the coming days. This has spurred a rise in prices on the hope that an agreement is reached.
As the global pandemic has continued to dampen economic prospects, there may be a glimmer of hope that things are turning around.
Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, said on Sunday he was cautiously optimistic that the outbreak was slowing down in the U.S. He also said parts of the country may start to reopen next month. However, he also added that this does not mean the entire country would flip a “light switch” and go back to normal.
Lower prices and reduced demand due to non-usage has resulted in prices being reduced at the pump in gas stations nationwide. Good news for consumers if only there was somewhere to drive to. Streets remain empty with the lockdown rules still in force.