CNBC’s Jim Cramer said Friday he thinks the price of oil will fall further because of demand and supply shocks from the dual crises of the coronavirus pandemic and global producer infighting.
Cramer cited oil prices as something high-frequency, computerized stock market traders are watching.
“I think oil takes out $20,” Cramer said on “Squawk on the Street.” With U.S. oil trading around $21.50 per barrel early Friday, prices would have to fall more than 7% to go below $20. It was down more than 4% late Friday morning.
On March 18, the per-barrel price of West Texas Intermediate crude, the U.S. benchmark, closed just above $20, in an over 24% single-day plunge that was its third worst session ever.
Even though oil bounced 23% the next day, in its best session ever, prices have been generally on the slide since January. WTI, as of Thursday’s New York settle, was off over 66% from its most recent 52-week high of $66.60 per barrel in April 2019.
Demand for oil has fallen dramatically in recent weeks as the coronavirus has led to sharp reductions in travel.
Gasoline demand in the U.S. has dropped “35% to 40%” in the last five or six days as stay-at-home advisories in many states have been implemented, truck stop billionaire Jimmy Haslam said earlier Friday on “Squawk Box.” Haslam runs Pilot Flying J, the largest operator of highway rest stops catering to truck drivers. He also owns the NFL’s Cleveland Browns.
In addition to slumping demand, an oil price war between Saudi…
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