RE:Today is by far the largest increase of cases outside ChinaAdd Norway to list of European countries that had their very first confirmed case today. Georgia did as well but it is technically a part of Asia even though culturally it is more European. Nonetheless, I said recently that Europe would have a pandemic in a few days. There’s little doubt of that now.
Regardless of of whether or not the reaction to coronavirus is overblown, the fact is the reaction is absolutely massive and will have a huge deflationary effect, particularly on oil. These effects are not near the end. They’re closer to the beginning and will take awhile to play out fully.
JMHO. GLTA.
WheresMeGold wrote: The number of new confirmed today of coronavirus outside of China has had by far the largest daily increase yet. This will continue to grow exponentially for some time and have a huge deflationary effect on commodities, particularly oil.
Today Greece and North Macedonia are two European countries to confirm their very first case. Pakistan also has had its first confirmed case today. You can be sure that for every confirmed case there are many infections untested and therefore unconfirmed.
Wait until this virus gets into the Middle East and African migrant communities. This will further bring this virus to Europe. The human cost is and will be very sad and unfortunate.
Market reaction this week was well overdue and much more pain is to come. As I’ve stated before expect Brent to drop below WTI and both grades to find a home in the $40’s per barrel. Hopefully VET figures out the new business environment it faces, one that I previously pointed out was already troublesome before coronavirus.
JMHO. GLTA.