Home Forex Forex Market Analysis WTI Crude Oil Drops Amid Coronavirus Fears – 61.8% Fibonacci Level In...

WTI Crude Oil Drops Amid Coronavirus Fears – 61.8% Fibonacci Level In Focus! 

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The WTI crude oil prices flashing red and dropped to $53.42 because the fears of coronavirus burdened on the crude inventories. The U.S. Crude Oil WTI Futures dropped 0.9% to $53.42.

The WTI oil inventories increased by 414,000 barrels for the week ended Feb. 14, the EIA said. That compared with expectations for a build of 2.5 million barrels, according to forecasts. The data supported crude oil prices yesterday, which raised more than 1% before decreasing today due to intensifying fears of the new coronavirus.

The global risk-off sentiment increased further on Friday after the World Health Organization (WHO) officials gave warning that the new coronavirus may break out globally at any time. 

According to the latest report, there are now 74,675 cases of the coronavirus in China, including 2,121 deaths in the country. Outside of China, there are 1,076 confirmed cases in 26 countries. The Chinese Commerce Ministry stays ready to take further steps to control the economic impact of coronavirus.

On the other hand, the U.S. State Department recently reiterated its travel warnings while Japanese officials and German Finance Ministry reports also showed attention about the coronavirus negative impact. Looking forward, coronavirus headlines will be the key to watch for fresh direction.

Daily Support and Resistance

  • S1 51.55
  • S2 52.75
  • S3 53.24

Pivot Point 53.95

  • R1 54.44
  • R2 55.15
  • R3 56.35

On the technical front, the WTI crude oil is trading at 52.94, heading towards 61.8% Fibonacci retracement at 52.25. On the 4 hour timeframe, the WTI prices are also expected to gain support around 52.25, which is the most extended by bullish trendline. Above this level, we may see bullish recovery in the WTI crude oil prices until 53.50 and 54. Good luck! 

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