Crude oil price rebounds today after a weak of heavy losses that brought the price over 16% lower the previous week the largest weekly decline the last eleven years. Crude oil price trades 2.70% higher today after seven consecutive trading sessions with losses. Investors now bet on further production cuts by OPEC+, with estimates of an additional production cut of 1 mbs/per day. They also expect a monetary stimulus from central banks around the globe. Crude oil price is one of the heavy battered assets of the coronavirus crisis as oil demand plunges amid slow international trade.
On Friday, Baker Hughes reported the number of active U.S. rigs drilling for oil fell by one to 678 this week. That came after increases in the last three weeks.
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WTI Crude Oil Prices Support and Resistance
The crude oil price is 2.38% higher at $45.81 in an attempt to rebound from the December 2018 lows that hit during the Asian trading session. Crude oil price is trading in oversold levels and as we have discussed the previous week a rebound is possible
On the upside, crude oil price initial resistance stands at $46.42 the daily top. If the crude oil price breaches the initial resistance, the next obstacle will be met at $4.97 the high from Friday’s trading session. More offers will be met at 48.65 the high from February 27th.
On the other hand, the first level to watch is the intraday low at $43.32. More bids might emerge at $42.80 the low from December 26th, 2018. A move below that support, would result in a deeper move down to $42.27 the low from December 24th, 2018.
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