WTI extends Thursday’s drop as virus cases rise

  • Oil extends overnight sell-off as virus concerns dominate the market sentiment. 
  • The resurgence of virus cases in the US has fueled lockdown fears. 

West Texas Intermediate (WTI) crude, a North American oil benchmark, dropped 0.40% to $39.58 during Friday’s Asian trading hours, extending Thursday’s 3% decline on concerns that the US, the largest economy in the world, may have to reimpose lockdown to contain the resurgence in coronavirus cases. 

The US on Thursday registered 65,551 new coronavirus cases, a record for a 24-hour period, according to a tally by Johns Hopkins University. The previous daily record of 60,200 cases was registered on Tuesday.

There has been a notable rise in the number of cases in states of Arizona, Texas, Florida, Georgia, and South Carolina over the past week or two and the resurgence has stalled the recovery in retail consumption. 

According to Goldman Sachs, hospital capacity in Arizona, Texas, and Florida is being filled up with cov1 COVID-19 patients and eventually, state officials will be forced to consider additional measures. 

If lockdown restrictions are reimposed, the US fuel consumption would again take a hit, causing a weakening of demand-side pressures in the oil market. 

The black gold fell sharply in April with front-month futures falling below zero for the first time on record as coronavirus-induced lockdown across the globe filled up storage tanks. 

Technical levels


Today last price 39.58
Today Daily Change -0.16
Today Daily Change % -0.40
Today daily open 39.74
Daily SMA20 39.33
Daily SMA50 34.83
Daily SMA100 32.92
Daily SMA200 44.65
Previous Daily High 41.09
Previous Daily Low 39.4
Previous Weekly High 40.8
Previous Weekly Low 37.6
Previous Monthly High 41.65
Previous Monthly Low 34.45
Daily Fibonacci 38.2% 40.05
Daily Fibonacci 61.8% 40.44
Daily Pivot Point S1 39.07
Daily Pivot Point S2 38.39
Daily Pivot Point S3 37.38
Daily Pivot Point R1 40.75
Daily Pivot Point R2 41.76
Daily Pivot Point R3 42.43



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD struggles below 1.1750 as ISM Manufacturing PMI beats

EUR/USD is trading below 1.1750, down amid US dollar strength. The ISM Manufacturing PMI beat with 54.2 points, yet the employment component missed with 44.3, a warning sign ahead of the NFP. Fiscal stimulus figures are awaited.


GBP/USD falls toward 1.30 amid a greenback comeback, UK concerns

GBP/USD has kicked off the week on the back foot, trading close to 1.30. Concerns about a lockdown in London, uncertainty about US-UK trade talks are weighing on the pound. The US dollar is gaining ground.


Gold: Interesting Fibonacci extension projects a move to $2500

Gold has risen 10.74% in the month of July, the biggest monthly increase since February 2016. As the price is breaking all-time highs it's hard to say where the yellow metal could end up.

Gold News

ETH/BTC skyrocketing, Bitcoin stays above $11,000

The cryptocurrency market is influenced by leveraged positions liquidation. Cryptocurrency experts expect further growth amid a global flight to safety assets. ETH/BTC hits the highest level since May 2019.

Read more

WTI drops below $40 on demand worries, OPEC+ output increase

Crude oil prices posted losses last week and seem to be struggling to shake off the bearish pressure on Monday. As of writing, the barrel of West Texas Intermediate (WTI) was trading at $39.85, losing 1.5% on a daily basis.

Oil News