Crude oil prices are trading weaker, down over 5% on Monday. The declines come on the back of newly reported cases on the virus outbreak. The economic impact is expected to hit demand for crude oil.
As a result, oil prices pared gains and are trading weaker.
Crude Oil Loses the Support
Oil prices plunged sharply, losing the support level of 51.65. This will push price action lower to retest the support at 50.00. A retest of this handle will likely stabilize the declines.
However, there could be scope for further declines. If oil prices bottom near 50.00, we expect to see a rebound taking place. But, under the current circumstances, this could take a while before prices turn bullish.
