— This is the script of CNBC's news report for China's CCTV on September 17, 2019, Tuesday.
After this Black swan event happened in crude oil market, panic rising, VIX gained around 7%, gold shows its advantage as safe haven asset.
In U.S. Monday trading, price for both spot gold and future gold increased to above $1550/ounce, but fell back in after-hours trading. Meanwhile, any factors that may lead to economy slowdown will put pressure to stock market. We can see that on Monday trading, EU and U.S. stock markets closed down after oil price soared. Airline stocks bear the brunt of decreasing, because a rising fuel cost will squeeze its profit. Among them, American Airlines lost more than 7%. But energy stocks performed well, with S&P 500 energy sector index rose around 3.4%. But overall, the impact to stock market is relatively limited. Marko Kolanovic, JPMorgan's global head of quantitative, believes only if the oil price increases to a range of 80 to 85 dollars per barrel, then the stock market can get real hurt.
Some analysts think currently it is hard to tell where the international oil prices will go as it highly depends on the local geopolitics situation and when the Saudi can restore its oil production. Saudi has said it will restore one third of its production till Monday, in an interview with CNBC, CEO of Chevron showed his positive attitude towards that.
Michael Wirth，Chevron CEO
And I will tell you, Saudi Aramco is a very capable company, I have enormous respect for them. If there's a company that can rebound quickly from something like this, it's Saudi Aramco.
However, given the damage to the plant, some guess that the aramco may further delay the planned listing, which has been delayed several times. It is not easy to forecast the international oil price now, but Americans may see an increase in gasoline price soon. Andy Lipow, a longtime oil analyst told CNBC that U.S. gas prices could rise by about 20 cents per gallon after the recent attacks in Saudi Arabia, which is around a 8% increase as the national average of gas prices has been around $2.56 per gallon recently, the U.S. region likely to see the biggest impact from higher gasoline prices is the West Coast, Saudi doesn't export much crude oil to the U.S., but 47% of that is exported to California. Higher gasoline prices will also have a direct impact on consumer prices. We will keep an eye on this issue.