WTI erodes over 4% amid coronavirus rout, $44.35 closer

Coronavirus crash spooks recession fears, oil dumped.
Saudi’s push for a substantial oil output cut ignored.
Virus updates and US data to hog the limelight.

Dhwani Mehta FXStreet

WTI (oil futures on NYMEX) remains deep in the red zone so far this Friday, having hit the weakest level in 13 months at $44.97 in the last hour.

WTI: Focus on $44.35

Bears now target the January 2019 low of 44.35, as the selling pressure around the black gold remains unabated amid an absolute blood bath across the global equity markets, with investors shunning risk and flocking to safe-havens such as the yen and US Treasuries.

Fears over a potential coronavirus pandemic are intensifying as the infectious disease grips three continents and heightens the risks of a global recession, which will hit the demand for oil.

Amid the virus fears, markets have also ignored the latest Financial Times report that cited Saudi Arabia urges the OPEC+ producers to cut their output by 1 million barrels per day (bpd), in a desperate attempt to stabilize the oil market.

Note that OPEC+ is scheduled to meet on March 5th and 6th in Vienna to discuss the supply cuts.

Looking ahead, oil prices are likely to remain vulnerable if the Wall Street rout deepens heading into the monthly closing on Friday.

WTI technical levels to watch

WTI

Overview
Today last price	45.12
Today Daily Change	-1.43
Today Daily Change %	-3.06
Today daily open	46.79

Trends
Daily SMA20	51.12
Daily SMA50	55.78
Daily SMA100	56.22
Daily SMA200	56.15

Levels
Previous Daily High	48.81
Previous Daily Low	45.96
Previous Weekly High	54.69
Previous Weekly Low	51.18
Previous Monthly High	65.45
Previous Monthly Low	51.05
Daily Fibonacci 38.2%	47.05
Daily Fibonacci 61.8%	47.72
Daily Pivot Point S1	45.57
Daily Pivot Point S2	44.34
Daily Pivot Point S3	42.73
Daily Pivot Point R1	48.41
Daily Pivot Point R2	50.03
Daily Pivot Point R3	51.25

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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