Brent crude oil price continues with heavy losses after the WTI crude oil futures for May delivery which expires today slumped to historic negative rates reaching at some point yesterday during U.S. trading session at -37.63 dollars per barrel. The negative crude oil price in the first-month futures reflects that investors don’t want to proceed with acceptance of delivery of the physical asset as the shortage in storage facilities is getting ugly as the crude oil oversupply undermines the recent agreement between the major oil-producing countries to cut the crude oil production. The June delivery futures hold around the $20 per barrel, while as of writing the May delivery contract has rebound above $19 per barrel.
Crude oil demand has collapsed amid the coronavirus crisis restrictions and a price war between Saudi Arabia and Russia. OPEC revised the forecast for 2020 global oil demand after the slump in global economic activity and warned for further revisions. OPEC now sees a contraction of global crude oil demand of 6.9 million barrels per day.
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Brent Crude Oil Price Technical Levels
The Brent crude oil price is 12.11% lower at $22.71 testing the recent low from late March. The technical outlook is clearly bearish for the Brent crude oil price, and lower levels might be on the cads. We need to see a reopening of the global economy and further crude oil production cuts by OPEC+ to see higher levels.
On the downside, the first support for Brent crude oil is at $22.26 the daily low. Next support will be met at 21.85 the low from March 30 trading session. Next level to watch is the lows from February at $18.84.
On the other hand, Brent crude oil price initial resistance stands at $26.47 the daily high. If the brent oil price breaks above, the next resistance will be met at $28.35 the high from yesterday’s trading session. The next supply zone stands at 30.44 the high from April 15.
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