U.S. crude falls below $30 as Fed move fails to calm markets

LONDON (Reuters) – U.S. crude fell below $30 on Monday as emergency rate cuts by the U.S. Federal Reserve and its global counterparts failed to tame markets and China’s factory output plunged at the sharpest pace in 30 years amid the spread of coronavirus. Brent crude was down $2.89, or 8.5%, to $30.96 a barrel by 1012 GMT. The front-month price had risen $1 earlier in the session. U.S. West Texas Intermediate (WTI) crude was at $29.94, down $1.79 or 5.6%. To combat the economic fallout of the pandemic, the Fed on Sunday cut its key rate to near zero, triggering an unscheduled easing by the Reserve Bank of New Zealand to a record low as markets in Asia opened for trading this week. The Bank of Japan later stepped in by easing monetary policy further in an emergency meeting. However, the measures failed to calm the investors, and stock markets weakened again. “It’s becoming evident that the major central banks across the globe are using all their available tools to prevent a crisis, but it seems the fear of the pandemic is taking control of investors,” said Hussein Sayed, chief market strategist at FXTM. Meanwhile, China’s industrial output fell… continue reading

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Source: CTRM Center

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