Michael Bradley, Tudor Pickering Holt, joins ‘Power Lunch’ to discuss the impact oil stocks are seeing from the coronavirus outbreak and other global factors.
Oil prices were little changed on Tuesday, after rallying earlier in the session. Prices rose but quickly came off session highs reached after the U.S. Federal Reserve cut interest rates in an emergency move designed to shield the world’s largest economy from the impact of the coronavirus.
The central bank’s statement said it was cutting rates by a half percentage point to a target range of 1.00% to 1.25%. Crude futures spiked after the financial stimulus but quickly changed course as traders viewed the Fed’s move as a signal that the situation was more serious than many had thought, said Bob Yawger, director of energy futures at Mizuho in New York.
“I think the rate cut was expected to happen this week and while it adds liquidity to the market, it does little to encourage anyone to book a flight anywhere,” said Scott Shelton, an energy broker with ICAP in Durham, North Carolina. “I think the market effects are short lived when it comes to the price of oil.”
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