Crude oil price continues lower for the fourth day in a row as worries of a global recession reduce the demand outlook for crude oil. Coronavirus outbreak in Europe and North America with the confirmed cases now at 100,000 reduce transportation and trade dramatically as investors trying to asses the economic impact on the global economy.
Organization of the Petroleum Exporting Countries – OPEC, announced that they would cut their production output by 1.5 million barrels per day (mbpd) until the end of 2020. Traders now worry that non OPEC countries might not comply with the decision, and continue to deliver pre-crisis quantities as the demand weakens across the globe.
The crude oil price is 0.68% lower at $45.58 as the correction from Monday’s rebound continues. The technical outlook is bearish for the black gold. Crude oil price is approaching the oversold levels again.
On the downside, the first level to watch is the daily low at $45.25. More bids might emerge at 43.31 the low from March 2nd. Next support area will be met at $42.80 the low from December 26th, 2018.
On the other side, crude oil price first resistance stands at $46.38 the daily high. If the crude price breaks the initial resistance, the next obstacle will be met at $47.61 the high from March 5th trading session. More offers will be met at 48.35 the high from March 4th.