While markets continue to digest the impact of the coronavirus on the economy, oil prices continue to roil investment markets. Production far outpaces demand and an oil shock in addition to virus is enough to add another layer of uncertain to sagging values.
On the bright side, the Senate has passed additional stimulus for small business in a quite expedient manner. This should help smaller businesses maintain payroll and potentially provide some short-term relief for economic figures. The House is next, and then on to the President.
Additional stimulus, Federal Reserve action, expanded testing, and the announced framework for an economic awakening provide positive points for setting the stage for an eventual recovery from the virus shock.
Here's what I'm reading this week:
Contracts to buy oil are expiring and there is a shortage of oil storage tanks.
Expectation is for oil prices to be subdued for awhile as demand isn’t expected to pick up.
- The Senate passes a $484 billion coronavirus relief plan that includes aid for small businesses and hospitals and money to expand testing.