Crude oil price managed to rebound today after yesterday’s sharp drop to the lowest levels since 2003. Crude oil price hit yesterday $20.50 as the excess supply amid the price war between Saudi Arabia and Russia pressured crude oil prices.
Above that, the coronavirus outbreak has decreased the global demand for oil amid the disruptions in international trade and travel.
The international airline trade association IATA forecasts now a $113 billion decline in revenue and added that global airlines would need up to $200 billion in government support to combat the coronavirus pandemic.
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Crude Oil Price Levels to Watch
The crude oil price is 8.55% higher at $22.59 attempting to rebound from the 17-year lows, as bears are in full control of the price. The technical outlook is negative, and ower levels might be on the cards, but we can’t rule out a rebound as the price has reached oversold levels.
On the upside, oil price initial resistance stands at $24.45 the daily high. If the crude oil price breaks above, the next resistance will be met at $27.70 the high from yesterday’s trading session. The following supply zone stands at 30.29 the high from March 17th trading session.
On the flip side, the initial support is the daily low at $21.77. Next critical support will be met at 20.40 the low from yesterday’s trading session.
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