Crude oil price crashed to 17-year lows as the sell-off continues for the third day in a row as more countries around the globe impose travel restrictions and closing borders. Low global demand and oversupply will continue to pressure oil price. Analysts expect the demand to decrease by 1.1 to 2.8 million barrels per day in 2020. Japan reported that crude imports in February were down 9% from a year earlier. The low prices in crude oil still could bring back to the negotiations table Russia and Saudi Arabia.
The airline trade association IATA expects now a $113 billion decline in revenue and noted that global airlines would need up to $200 billion in government aid to combat the coronavirus pandemic.
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Crude Oil Price Technical Outlook
The crude oil price is 4.90% lower at $25.59 making fresh 17-year lows as the crude oil price pressured by weak demand and bearish technical outlook. Lower levels might be on the cards despite the price has reached oversold levels and speculators bet on a relief rally.
On the downside, the first support is the daily low at $25.54. Next critical support will be met at 24.729 the low from November 2002. A break below might test the low from June 10, 2002 at 23.73.
On the upside, crude oil price initial resistance stands at $27.60 the daily high. If the oil price breaks above, the next resistance will be met at $30.31 the high from March 17. The next supply zone stands at 33.72 the high from March 16th trading session.
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