Oil prices are at a 17-year low: Pete Wargent

Oil prices are at a 17-year low: Pete Wargent
Oil prices are at a 17-year low: Pete Wargent

EXPERT OBSERVER

After a relief rally, the oil price has dropped back towards new cycle lows as the Coronavirus threatens to lead to a prolonged slump in demand.

A few more buying opportunities looking likely this week. 

The price of Brent Crude is now -67.2 per cent below its January highs and we're staring at the lowest price level in 17 years. 
 
 
Some analysts think that the oil price could hit $10/barrel over the coming months, which from my perspective would represent 'back up the truck' territory.

Stage 3 rolled out

There have been some more promising numbers for New Zealand and Australia on new cases of the virus.
 
The short, sharp shutdown looks likely to be the base case strategy to flatten the curve and buy valuable time for medical centres and hospitals.
 
Victoria ramped up its response to Stage Three, with spot fines of up to $1,600 for social distancing breaches, while gatherings of more than two are no longer to be allowed (excluding members of the same household).

Queenslanders now also face $1,300 spot fines for breaches. 

PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and blogger.

Pete Wargent

Pete Wargent

Pete Wargent is the co-founder of BuyersBuyers.com.au, offering affordable homebuying assistance to all Australians, and a best-selling author and blogger.

Tags: 
Oil Coronavirus

Community Discussion

Be the first one to comment on this article
What would you like to say about this project?