WTI oil collapsed below week-long range floor and hit new lowest since 2003 as markets continue panic selling on fears of global recession on corona virus pandemic that already slashed demand.
Big oil producers entered price war and competing with increase of production that further deepens the crisis and increases already huge oversupply, with oil producers facing difficulties with storage for the excess.
Fresh weakness broke below 2016 low ($26.04), with $25 zone higher base of 2002/03 being under pressure and psychological $20 level coming in focus. Oil price can drop much more as steep downtrend of past three month has gained strong negative momentum and situation from 2008, when oil price slumped over $100 within six months, can repeat.
Also, a number of oil refiners would be forced to close down, as already seen in the recent recession that started in 2008, that would leave only big players in the game. As already mentioned, crude stocks reports are unable to provide any relief on positive releases, keeping the price to be driven by extremely negative sentiment and fresh (again) negative headlines.
Res:Â 27.00, 27.61, 28.47, 29.29
Sup:Â 25.53, 25.00, 24.30, 24.00
