The support region of $49.00-20 is holding in considerably well as the West Texas Intermediate, the U.S. benchmark crude oil rebounds from an intraday low of $49.74 to a high of $50.76 following news from China’s National Health Commission on Tuesday said the number of new, confirmed coronavirus cases actually fell.
The new coronavirus has been named Covid-19 by the World Health Organisation. Scientists had to find a name “that did not refer to a geographical location, an animal, an individual or group of people, and which is also pronounceable and related to the disease,” said Tedros Adhanom Ghebreyesus, director-general of the WHO.
The death toll from the Covid-19 outbreak in China topped 1,016 on Tuesday, as the World Health Organization (WHO) warned that countries must not let the epidemic get out of control.
There are now more than 42,638 confirmed cases in China, as well as 319 in 24 other countries, including one death, according to the WHO and Chinese health officials.
Elsewhere, Russian President Vladimir Putin met with the head of Russia’s largest oil producer Tuesday, ahead of a meeting Wednesday between Russia’s energy minister and its oil companies.
A technical committee of the OPEC+ alliance suggested last week that an additional 600,000 barrels per day be taken off the market, on top of other reductions that producers have carried out over three years now.
Yet Russia, the most important ally of OPEC kingpin Saudi Arabia, had hesitated in approving the plan for fear that deeper cuts could hand over significant market share to U.S. oil drillers, who will never be a part of OPEC.
At present, the posted inverted hammer is a sign to a potential rebound to $53.80-90, with the immediate target viewed to $51.60-65.
However, the upside view would be negated, if prices close under $49.00, which in turn would leave a short-term neutral view.