You expect the market to move according to the news AFTER you hear it? lol, some one has the news before you and did their trade, and now they dumping it on those that are following the news and providing an opportunity for them to get out while those getting in on the news stay holding the bag
From Marketwatch: "U.S. benchmark oil futures dropped Friday to mark another finish at their lowest in more than 18 years, tallying a loss of 20% for the week. Worries about rising U.S. supplies, a potential record drop in demand and tight storage capacity fed oil's decline. May West Texas Intermediate oil CLK20, -8.40% fell $1.60, or nearly 8.1%, to settle at $18.27 a barrel on the New York Mercantile Exchange. That was the lowest finish for a front-month contract since January 2002, according to Dow Jones Market Data. Prices lost 19.7% from the settlement on April 9. Trading was closed last Friday for the Good Friday holiday." So it's still the storage issue even though the US Government assured that they will help? Oil is going in a different direction than the S&P is interesting. Guess there are a bunch of bears left there. Altough all bets are off when it comes to marketwatch. Waiting to see what Barrons/WSJ will come up with
Here we go, less than anticipated demand from China it seems, down 33% https://oilprice.com/Energy/Crude-Oil/Saudi-Arabia-Slashes-Asian-Oil-Exports-By-2-Million-Bpd.html
Its letting you know sir that the news is oriced in by the time you hear it you can expect the opposite to happen
No worries, I wrote about all the things listed a few days ago when they have been priced in. I was expecting bad news to come out because nothing that wasn't known up untill the time I posted gave any indication for a fall in oilprice on that note: https://oilprice.com/Energy/Energy-General/Storage-Fears-Drive-Oil-Below-18.html
Other than more shale producers shutting down which everyone kind of figures will happen anyway why would you think the other factors would be bullish. Oil is in a deeeeep bear market. The trend is not up. Best is that it might just move sideways for a good long while.
Dow/S&P is up today S&P and Oil correlate except if there are bad news, I suppose the Chinese cut was worse than anticipated
These are not ordinary times. So throw correlation out the window. Oil is ALL about demand. Puny demand.
Brent crude was actually slightly higher most of the day, while WTI front month May got destroyed. The OPEC+ cuts are providing somewhat of a floor outside the US. But there were no voluntary cuts by US producers, so storage space is going to run out much faster in the US than anywhere else in the world. There's still too much WTI being produced, while there will be actual real production cuts by OPEC+ in Brent starting next month. So WTI is and will continue to underperform Brent as long as the US shale producers continue to blindly pump WTI out of the ground, while nobody needs it.