Oil has hit “perfect storm” in the economy as the market is glutted with supply and consumers are staying home, financial advisor George Mortimer said Tuesday morning.
Mortimer, who is with Edward Jones, speaks weekly on Tuesdays with KOGT’s Gary Stelly on The Morning Show.
Mortimer, who has been in finance for many years, said he has never seen where the price of oil has gone into the negative column. He explained that oil storage facilities are full and cannot hold any more.
With the Covid 19 pandemic, people are isolating themselves and huge parts of the business sector has shut down. Mortimer said people are not driving cars, taking planes, going on cruises, or using plastics like they usually would. The oil is not being refined into gasoline, plastics, and other petroleum-based products.
But the advisor is still optimistic about the future of the economy. “We have a great engine, but we need to work on the distributor cap,” he said.
Mortimer said the economy will revive with public demand. However, the public will still be leery of going places. He can’t estimate at this time when demand will build. “A year from now? Six months from now?” he asked.
“Even if you open industries back up, how many people will feel safe going to hotels, flying on airplanes, going to casinos?” he questioned.
He said the American people “are very resilient.” Things will get better, he assured.
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