Like oil, the US may be worth a lot less in a post-corona world

In February, the fall in demand for oil because of the worldwide lockdown triggered by the new coronavirus threat should have ideally been countered by a cut in production. | Photo - iStock

A few weeks ago, a school teacher in the US state of Missouri was dreaming of becoming a billionaire overnight. Convinced by the market theory of ‘buy on dips’, the elementary school teacher placed an order for 10 million barrels of oil at the Western Texas Intermediate (WTI).

In theory, it was a great idea. At the beginning of 2020, crude was trading at nearly $60 per barrel at the WTI, the benchmark bourse for oil in America. So, when it......