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Oil dips below $20 a barrel to start week as coronavirus crushes demand amid price-war

Oil futures get the week off to an ugly start, with the U.S. benchmark dipping below the psychologically important $20-a-barrel level to trade at an 18-year low as the global COVID-19 pandemic crushes demand and a price war between Saudi Arabia and Russia floods the world with crude. 8:37 a.m. Today

PBF Energy's stock surges after asset sales announced, dividend suspended

Shares of PBF Energy Inc. surged 5.7% in premarket trading Monday, after the oil refiner announced spending cuts that includes the suspension of its dividend, and announced the sale of assets for $530 million. The company's last quarterly dividend was 30 cents a share, which at Friday's stock closing price implied a dividend yield of 18.87%, compared with the implied yield for the S&P 500 of 2.35%. The company said it has entered into a "letter of intent" to sell five hydrogen plants to Air Products and Chemicals Inc. for cash proceeds of $530 million, with the deal expected to close in April. PBF also said it was cutting its guidance for 2020 capital expenditures $240 million, or by 35%; lowering 2020 operating expenses by about $125 million; lowering annual operating expenses by over $20 million through salary reductions, with Chief Executive Thomas Nimbley's salary being cut 67% and the board of directors and executive leadership compensation being cut in half. The company also withdrew its previously provided financial guidance. "We are currently operating our refineries at minimum rates, a throughput reduction of approximately 30 percent versus our expectations," the company said in a statement. The stock has tumbled 79.5% over the past three months through Friday, while crude oil futures have shed 67.1% and the S&P 500 has shed 21.1%. 7:54 a.m. Today

Devon Energy to reduce 2020 capex by another $300 million amid slumping oil price

Devon Energy Corp. said Monday it is reducing its 2020 capex budget by an additional $300 million, cutting it by a total of $1 billion, or 45%, compared to its original budget. The latest reduction will be driven by the deferral of activity in the Eagle Ford, by improved efficiencies in the Delaware Basin and lower service-cost pricing across the company's asset portfolio. The company has also entered into regional basis swaps to provide additonal hedges against lower commodity prices. Shares were down 0.8% premarket but are down 75% in the year to date, while the S&P 500 has fallen 21%. 7:03 a.m. Today

Commodities Headlines

 - MarketWatch photo illustration/iStockphoto
First-half earnings are a bust as coronavirus stops companies in their tracks. Will the second-half be better? It depends

A flurry of recent profit warnings suggest that corporate earnings will be slammed in the first half of the year as the COVID-19 pandemic forces companies to close offices and stores, furlough workers and idle plants, but the forecasts get murkier after that.

11:45 a.m. March 29, 2020
 - AFP/Getty Images
Conditions are ripe for the price of gold bullion to double

Interest rates at zero, record deficit spending and the Federal Reserve’s quantitative easing with no preset limits is the perfect environment for gold.

1:54 p.m. March 28, 2020
Who Gets a Piece of the $2 Trillion Coronavirus Stimulus Package

President Trump signed an historic $2 trillion bill into law Friday aimed at relieving workers and businesses hurt by the novel coronavirus pandemic. WSJ breaks down what is in the package. Photo: G. Ronald Lopez/ZUMA Wire video content

6:26 p.m. March 27, 2020
Cannabis supplier GrowGeneration reports full-year earnings miss

Cannabis grow supply company GrowGeneration Corp. shares fell 4.5% in the extended session Friday after the company missed the consensus estimates for full-year earnings. The company reported fiscal 2019 net income of $1.9 million, which amounts to 5 cents a share, versus a net loss of $5.1 million, or 22 cents a share, in the year-ago period. Full-year revenue rose to $79.7 million from $29 million in the year-ago period. GrowGeneration reported fourth-quarter sales of $25.4 million versus $9.1 million a year ago; GrowGeneration reported a fourth-quarter net loss of $462,616, which amounts to roughly a penny a share. Analysts polled by FactSet expected full-year earnings of 9 cents a share on sales of $80 million. The company said it expects full-year 2020 revenue of $130 million to $135 million and first-quarter sales of $31.5 million to $32.5 million. Analysts expected first-quarter sales of $27.3 million and full-year revenue of $137.2 million. GrowGeneration said amid the COVID-19 pandemic it is considered an "essential" supplier because it offers products used by the agriculture industry and plans to remain in operation. The company said it had $10.4 million in cash as of March 23. GrowGeneration shares have gained 6.1% this year, as the S&P 500 index has fallen 21.3%. The Cannabis ETF has dropped 32%.

5:56 p.m. March 27, 2020
 - Bloomberg
Plunge in global crude demand sends oil prices down for a 5th straight week

Oil futures finish lower on Friday,with a huge drop in demand as result of the global COVID-19 pandemic sending prices down for a fifth week in a row.

4:06 p.m. March 27, 2020
 - Bloomberg
This crushing double blow for the oil sector could force a wave of consolidation, say analysts

A Saudi-Russia oil price war and economies shutting down from the coronavirus have dealt a harsh blow to the oil sector. Consolidation in some parts of the sector may come sooner than investors expect, say some.

2:49 p.m. March 27, 2020
Oil prices down a 5th week in a row as global demand drops

Oil futures fell Friday, with the slowdown in energy demand sending prices down for a fifth straight week. U.S. benchmark prices, however, found modest support after Baker Hughes reported that the number of active U.S. oil rigs fell by 40 to 624 this week, indicating a likely decline in production. May West Texas Intermediate oil fell $1.09, or 4.8%, to settle $21.51 a barrel on the New York Mercantile Exchange after trading as low as $20.88. For the week, prices fell nearly 5%.

2:43 p.m. March 27, 2020
 - Getty Images
Natural-gas futures touch their lowest level in 25 years, but still outperform oil

Natural-gas prices have dropped to their lowest level in a quarter-century, but they have managed to outperform oil against a backdrop of declining demand fed by efforts to slow the spread of COVID-19.

2:41 p.m. March 27, 2020

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