WTI tumbles to sub-$51.00 levels on coronavirus panic


  • Prices of the WTI shed more than 4% to the sub-$51.00 zone.
  • Coronavirus fears re-emerge and weigh on traders’ sentiment.
  • US oil rig count went up by 1 during last week to 679 active oil rigs.

Prices of the WTI are trading deep into the negative territory at the beginning of the week, breaching the key support at the $51.00 mark per barrel and slipping back to fresh multi-day lows at the same time.

WTI weaker on COVID-19 concerns

Prices of the West Texas Intermediate are losing ground for the third consecutive session on Monday after climbing to fresh monthly tops beyond the $54.00 mark per barrel on Thursday.

Renewed an increasing concern on the Chinese coronavirus and its impact on global growth are badly hurting the risk-associated complex on Monday, forcing crude oil prices to give away nearly 5% to levels below the $51.00 mark.

Also collaborating with the downside, the OPEC+ has decided to leave unchanged the date of the next meeting on March 6th, while Russia refused to implement deeper cuts to the oil output under the current agreement.

Further out, US crude oil supplies remained on the rise during last week as per the API and EIA reports, while driller Baker Hughes reported that US oil rig count went up by one to 679 active oil rigs, also during last week.

What to look for around WTI

The rebound in crude oil prices from YTD lows in the $49.30 region seems to have run out of impetus above the $54.00 mark per barrel so far. In the very near term, jitters surrounding the fast-spreading COVID-19 are expected to keep weighing on prices along with persistent worries over the excess of supply of the markets. On the supportive side - albeit relegated by the current coronavirus developments - emerges the situation in Libya, which not only remains unsolved, but it is also worsening by the day. No news instead from the OPEC+, which is due to meet early in March.

WTI significant levels

At the moment the barrel of WTI is losing 4.83% at $50.62 and a breach of $50.00 (key support level) would aim for $49.31 (2020 low Feb.5) and finally $42.20 (2018 low Dec.24). On the upside, the next hurdle aligns at $54.40 (monthly high Feb.20) seconded by $56.29 (200-day SMA) and then $59.73 (high Jan.20).

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

Editors’ Picks

EUR/USD extends slump after NFP shows massive job loss

EUR/USD is trading below 1.08, down on the day. The Non-Farm Payrolls report has shown a loss of 701,000 jobs, worse than expected. The ISM Non-Manufacturing PMI surprised to the upside with 52.5 points. 

EUR/USD News

GBP/USD drops below 1.23 amid sour mood, after UK data

GBP/USD has dropped below 1.23 as the market mood sours. Final UK Services PMI dropped to 34.5 points, worse than expected.  

GBP/USD News

NFP Quick Analysis: 701K jobs lost only be tip of the iceberg, why King Dollar is ready for coronation

The US lost 701,000 jobs in March, the worst in 11 years. The Non-Farm Payrolls figures are lagging the fast-moving events. Wage growth is also skewed and should be ignored. The safe-haven dollar has room to rise. 

Read more

WTI trades in three-week’s highs near $26.50 a barrel

WTI is jumping from multi-year lows following the US President Trump’s tweet of yesterday (Thursday) suggesting a Saudi-Russian deal was on the pipeline.

Oil News

Gold remains confined in a range, moves little post-NFP

Gold extended its sideways consolidative price action around the $1615 region and had a rather muted reaction to the US monthly employment details

Gold News

Forex MAJORS

Cryptocurrencies

Signatures