U.S. Economic News

April 6, 2020

U.S. News

New analysis by the Wall Street Journal and Moody’s shows that over a quarter of U.S. daily economic output has disappeared since the first week of March due to regional coronavirus shutdowns, with the large metropolitan counties under lockdown orders representing a disproportionate share of national output. If the 29% monthly drop in daily economic output were sustained over the next two months, it would suggest a roughly 75% annualized GDP decline in the second quarter. WSJ

According to Bloomberg, Saudi Arabia, Russia, and other major oil producers are trying to negotiate a deal to reduce oil production by 10%, but U.S. participation – a critical component of reducing global output – appears highly tenuous. The world is rapidly running out of oil storage as demand dries up while production continues, with some producers on the verge of having to suspend output completely if the major players are unable to come to an orderly supply cut agreement. Bloomberg