WTI Crude Oil tumbles toward $31 on shock Fed cut amid the coronavirus crisis

Yohay Elam FXStreet

WTI crude oil has kicked off the week with a fall to nearly $31, down nearly $2 or 6% from the close price on Friday.

The Federal Reserve shocked markets with the second unscheduled interest rate cut, this time eliminating 1% and setting it at zero. The coronavirus crisis triggered a massive sell-off in stocks and fears of s systemic risk grew. Petrol prices also suffered the breakdown of the OPEC+ pact between Saudi Arabia and Russia.

While the Fed's cut provides room for some calm in markets, it also reveals the levels of distress.

WTI still trades above last Monday's low at the $28 handle. Support awaits at $31 and $30.50. Resistance is at $32, $33, and $34.50.

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

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