Crude oil price continues south for the fifth consecutive day as investors worry that the coronavirus impact will affect the crude oil demand for longer than expected as hundreds of new coronavirus cases reported in Europe and America. Crude oil is one of the victims of the coronavirus crisis as demand plunges amid slow international trade.
Crude oil inventories increase by 452K barrels, below analysts forecasts of 2.005 million barrels which is supportive for the oil price.
Earlier this week the API reported that crude inventories rose by 1.3 mb in the week to February 21, to 4.2 mb, below the expectations for a build of 2 mb.
The crude oil price is 1.29% lower at $48.09 a level that we haven’t seen since January 2019, as the price continues lower for the fifth consecutive session. Bears are in control of crude oil and lower levels are possible. Sellers have to watch the RSI as it is entering oversold area. The RSI 14 is at 29.5 and crude oil price might make an attempt for a rebound.
On the downside, the first level to watch is the intraday low at $47.82. More bids might emerge at $46.73 the low from January 4th,2019. A move below that support, would result in a deeper move down to $44.44 the low from January 2th, 2019.
On the other side, in case of a rebound, crude oil price initial resistance stands at $48.78 the daily top. If the crude price breaches the initial resistance, the next hurdle will be met at $50.33 the high from yesterday’s trading session. While more offers will be met at 51.90 the high from February 25th.