Wall Street opened on Monday with slight falls despite the agreement reached between the oil powers to apply a historic snip in the supply of almost 10 million barrels per day. In the early hours of the session, the Dow Jones fell 1.4%, the S&P 1.2%, while the Nasdaq technology fell 0.7%, leaving behind the solid gains of last week and returning to fears about the economic impact of the coronavirus. The oil price of Texas (WTI), benchmark in the US markets, rose more than 4.9% to $ 23.88 per barrel.
The expanded Organization of Petroleum Exporting Countries (OPEC), which includes Russia and other Eurasian countries, agreed last Sunday on a cut of almost 10 million barrels per day to be applied from May, a month in that, together with April, demand is expected to suffer to a greater extent from the coronavirus crisis. The figure will gradually decrease until April 2022, when the oil powers will have to negotiate again. After the pact, brent crude , the global indicator of oil prices, rose 1.6% on Monday, to $ 32 per barrel.
The agreement reached by the oil powers was slow to close because Mexico successfully negotiated to minimize its share of cuts. The specific number of cuts to which countries such as the United States, Canada, Brazil or Norway, among others, that are not part of OPEC or of expanded OPEC, will still be in the air. According to Bloomberg, the US, Canada and Brazil will contribute a joint cut of about 3.7 million barrels per day.
The New York Stock Exchange trades lower after US stocks posted last week – four business days to the Good Friday holiday – its biggest week of earnings since 1974. During those days, the S&P 500 rallied 12 %, the highest in decades. The Dow Jones advanced 13%, while the Nasdaq techs reached 11%.