Home Forex Forex Market Analysis WTI Crude Oil Slips Below $29- Coronavirus Outbreak Weights! 

WTI Crude Oil Slips Below $29- Coronavirus Outbreak Weights! 

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The WTI crude oil prices flashing red falling from $30 to $28.70 in the wake of the coronavirus outbreak and uncertainties encompassing the price war between Saudi Arabia and Russia.

Improvements in the oil prices were limited today as new nations have announced COVID-19 lockdowns. Airlines are decreasing the number of regular flights because of increased numbers of cases and countries declaring quarantines to combat the new coronavirus. Canada and Malaysia are the two most recent countries to ban arrivals and close their borders.

The U.S. President Donald Trump said overnight that economic interruptions from the spread of the coronavirus and stimulus measures taken against it could start to a recession.

On the other hand, the ongoing price war between Saudi Arabia and Russia, two of the world’s biggest oil producers, also limits the oil price gains. Saudi Arabia’s Saudi Aramco threw down the gauntlet, with Chief Executive Officer Amin Nassar informing investors that the company is “very comfortable with oil prices below $30 a barrel”.  

Meanwhile, the group has decided to produce at maximum capacity of 12 million barrels a day next month, and there are no changes forecast for May. Consequently, crude oil prices are trading with a selling bias today.

Daily Support and Resistance

  • S1 23.34
  • S2 26.59
  • S3 27.96

Pivot Point 29.84

  • R1 31.21
  • R2 33.08
  • R3 36.33

On the technical side, crude oil seems to have formed a descending triangle pattern, which is likely to support crude oil around 27.70. Above this, the oil prices may trade bullish until 30 and 32.50. However, the bearish breakout of 27.70 can lead the WTI prices towards 25.65 and 23.85. Let’s consider staying bearish below $28.95. Good luck!  

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