Home Forex Forex Market Analysis WTI Crude Oil’s Bearish Mode Dominates – COVID19 In-Play

WTI Crude Oil’s Bearish Mode Dominates – COVID19 In-Play

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The oil market saw a historical event during the session. The May contract for West Texas Intermediate (WTI) futures collapsed to zero before ending the day at minus-$37.63 a barrel, meaning producers have to pay buyers to take oil away or store it. 

This is the first time in recorded history that crude has dropped into negative territory, far surpassing the 1986 low of $10.20 a barrel. Meanwhile, the June WTI contract slumped 18.0% to $20.43 a barrel, and Brent crude oil fell 8.9% to $25.57 a barrel.

The oil traders will keep their eyes on any news about the supply restrictions from the majors for fresh impetus. Weekly oil stock data, for the period ended on April 17, from the American Petroleum Institute (API), prior 13.143M, could also offer second-tier clues for the energy benchmark.

WTI Crude Oil – Daily Technical Levels

Support Resistance 

14.82      16.06

14.25      16.74

13.01      17.98

Pivot Point 15.5

May contract for the Crude Oil faced a massive decline as its prices plunged into negative zone recently for the first time in history. Nevertheless, the spot rates are holding around 14.70, supported above the level of 11. Breakout of this level is expected to encourage sharp selling in the market, and technically, this presents room for selling unto 11 and 8 while resistance exists nearby 17.36 today. Good luck! 

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