Crude Oil Price Plunge Below $30 As Recession Fears Rise

Crude Oil Price
Crude Oil Price

Crude oil price resumed downtrend on Monday as recession fears rise amid the disruptions in the global economy. Crude oil price lost the previous week over 23%. US Federal Reserve slashed interest rates by 100 basis points to zero in an attempt to offset the coronavirus impact on the economy. Fed would also buy back $700 million of Treasurys and mortgage-backed securities.
Airlines and leisure companies continued to suffer today. Tui shares lost 28%, EasyJet is 26% lower, British Airways is 21%, and Air France drops 17.5%.
The depressed outlook for global demand and further disruptions in trade and travel amid the crude oil price war between Saudi Arabia & Russia might put further pressure to oil prices.

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Crude Oil Price Levels To Watch

The crude oil price is 6.71% lower at $29.59 as the price pressured by the weak fundamentals and bearish technical outlook. The crude oil price has reached oversold levels and bulls bet on a relief rally.  

On the downside, the initial support level is the daily low at $29.55. Next critical support will be met at 27.49 the low from March 9th. A break below might test the low from February 17, 2016, at 28.69. 

On the upside, oil price first resistance stands at $33.75 the daily top. If the oil price breaks above, the next hurdle will be met at $36.23 the high from March 11. The next supply zone stands at 41.32 the low from March 6th trading session, which will also close the recent gap down. 

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