The Morning View: April 21, 2020

  • April 21, 2020

BY: MARSHALL BARTLETT
Senior Vice President / Portfolio Manager

Following yesterday’s historic price movements, WTI oil prices for next-month delivery remain under stress this morning. Prices for May futures contracts remain negative, while June futures contracts are near $15 per barrel. Both the lack of demand due to global self-isolating measures for COVID-19 and limited storage options due to oversupply concerns are contributing to the problem. Meanwhile, political leaders appear close to agreement on the next round of stimulus, including additional support for small businesses. The initial facility ran out of funding in recent days, highlighting the need for assistance across many industries as well as the speed which the program was put together. The timing and process of the reopening economy will be important to ensure businesses, individuals, and markets will find the right accord moving forward. In all, bond yields and equity futures are lower this morning heading into the market open.

This material is intended to be for informational purposes only and is intended for current or prospective clients of Argent Trust Company. This information is obtained from sources believed to be reliable, and its accuracy and completeness are not guaranteed. Information does not constitute a recommendation of any investment strategy, is not intended as investment advice and does not take into account all the circumstances of each investor. Forward‐looking assumptions are Argent Trust Company’s current estimates or expectations of future events or future results based on proprietary research and should not be construed as an estimate or promise of results that a portfolio may achieve. Actual results could differ materially from the results indicated by this information. Investments can go down as well as up. Past performance is not a reliable indicator of future results.