Key Points
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New York Gov. Andrew Cuomo said Sunday the state plans to re-open its economy in phases. The first phase, Cuomo said, would involve New York’s construction and manufacturing sectors. [1]
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The Bank of Japan expanded monetary stimulus on Monday and pledged to buy an unlimited amount of bonds to keep borrowing costs low.[2]
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Oil plunges more than 25%, extending recent losses as storage fills [3]
“The spread of the coronavirus at home and abroad is inflicting a severe impact on Japan’s economy,” BOJ Governor Haruhiko Kuroda told a news conference after the policy meeting. [2]
“The BOJ will purchase necessary amounts of government bonds without setting an upper limit” to keep long-term interest rates around its 0% target, the statement said.[2]
“The market knows that the storage problem remains and we are on a calculated path to reach tank tops in weeks,” said Bjornar Tonhaugen, head of oil markets at Rystad Energy.
U.S. stockpiles rose by 15 million barrels to 518.6 million barrels for the week ending April 17, according to the U.S. Energy Information Association. [3]
Last Monday WTI plunged into negative territory for the first time in history
“Will we hit -$100/bbl next month?” Mizuho analyst Paul Sankey wrote in a note to clients last week, to which he answered, “quite possibly.” “The physical reality of oil is that it is difficult to handle, volatile, potentially polluting, and actually useless without a refinery.” [3]
James B. Rojers, Jr