Oil: Correction required downside towards support 48$ and 45$
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Fears about a new wave of COVID-19 Virus a decline in oil demand in worldwide again due to New lockdowns.
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Saudi Arabia announced that it would decrease oil shipments to at least nine clients in Asia and Europe.
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Surprised by the decision of Saudi Arabia to further decrease its output send oil price high 12 Feb 2020 level.
The price of February WTI oil futures rose by 1.07% to $53.78 per barrel. At the closing of trading on February 12, 2020. It is worth noting that the futures for North Sea WTI crude oil have been rising continuously for six consecutive sessions.
The following its decision to cut an additional 1 million BPD in oil production, Saudi Arabia announced that it would decrease oil shipments to at least nine clients in Asia and Europe. Last week, many were surprised by the decision of Saudi Arabia to further decrease its output, as well as on the price increase for clients in Asia and the United States. The announcement came after OPEC agreed to raise production by 75,000 bpd in February, and by 120,000 bpd in March. At the same time, the UAE warns that any attempt by oil producers to increase production this year will backfire. In particular, it will lead to a drop in prices.
Investors are still hoping that oil reserves will quickly decline as a result of the previously announced reduction in production by Saudi Arabia. However, at some point, all news showing bullish trend but the alternative world still facing smart lockdown or national lockdown due to New Virus, Still lot of uncertainty in the market could send oil price again below 40$
According to the API , the reserves of black gold in the United States declined by 5.8 million barrels last week. This downward movement continued for the third week in a row and was the highest since the end of October last year. A week earlier, inventories also fell by 1.7 million barrels.
SUPPORT/RESISTANCE
✅S1= 48$
✅S2=45$
✴️R1=52.40$
✴️R2=55$
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