Stocks opened lower as oil collapse continues. Stocks opened lower as market participants try to figure out the implications of crashing oil prices. While the May contract going negative got all of the attention Monday, the June futures contract for WTI crude oil is down more than 20% this morning.
North Korea in the news. There are conflicting reports about the health of North Korean leader Kim Jong Un after undergoing a surgical procedure, with a CNN report suggesting that Kim is in critical condition.
Oil futures prices turn negative. US oil futures prices with the nearest expiration date saw a historic collapse Monday, falling below zero to end the trading session at -$37.63 per barrel. The contract, often taken as representative for the price of oil, has faced unusual conditions that have caused distortions, including a historic collapse in demand, reverberations from the Saudi price war, and near-term expiration with very few buyers. Other measures of oil prices, such as contracts with later expiration dates and European pricing, confirmed weakness but still saw prices closer to $20 per barrel. We discuss this more today on the LPL Research blog.
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