WTI collapses to the $46.00 mark/bbl, fresh yearly lows

WTI accelerates the downside to the $46.00 area.
Prices slump on increasing coronavirus concerns.
Traders’ attention now shifts to the OPEC+ meeting next week.

Pablo Piovano FXStreet

There is no respite for the decline in prices of the WTI, which are now testing fresh yearly lows in the $46.00 neighbourhood.

WTI looks to OPEC+, coronavirus

Prices of the barrel of the West Texas Intermediate are shedding further ground on Thursday, navigating levels last seen back in January 2019 around the $46.00 neighbourhood.

In the meantime, increasing jitters around the coronavirus and its impact on crude oil demand plus omnipresent oversupply concerns proved to be a lethal combination for crude prices, which are reversing two consecutive weeks with gains and losing around 30% since January’s peaks.

Moving forward, traders are anxiously waiting for the OPEC+ meeting in Vienna on March 5-6, where an extension of the ongoing oil output cut deal as well as potential deeper cuts will be on top of the agenda.

Later on Friday, driller Baker Hughes will close the weekly calendar with the publication of its usual report on US oil rig count.

WTI significant levels

At the moment the barrel of WTI is losing 4.44% at $46.26 and a breach of $42.20 (2018 low Dec.24) would aim for $41.83 (2017 low Jun.21) and finally $38.85 (monthly low Aug.2016). On the other hand, the next resistance of note emerges at $49.31 (low Feb.4) seconded by $51.07 (21-day SMA) and then $54.40 (monthly high Feb.20).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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