West Texas Intermediate bears continue to weigh on the market as Saudis boost exports to record high

March 18, 2020 - 2 weeks ago
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West Texas Intermediate (WTI) crude oil prices continue to feel the heat from the bears as prices tumble further into the overnight’s session and ink in an intraday low of $27.03 and closed to a -6% loss, while the global benchmark Brent is down 4%.

Reports came in overnight that Saudi Arabia was planning to boost oil exports in May to a record 10 million barrels per day, which triggered the oil prices to fall.

WTI crude prices stayed under $30 per barrel on Tuesday, even after the U.S. government took drastic measures to calm markets in the economic fallout from COVID-19, the White House held a press conference on Tuesday on the coronavirus updates, with Treasury Secretary Steven Mnuchin signalling that the Trump administration is very interested in sending Americans a check in the mail—and soon.

U.S. President Trump, speaking at the White House, promised to help thousands of workers facing furloughs and layoffs.

Among options being considered: $1,000 checks to almost all adult Americans, he said. Trump urged everyone to remain vigilant – stay at home as much as possible, limit gatherings to 10 people – for at least two more weeks.

“We have to fight that invisible enemy, I guess unknown, but we are getting to know it quickly,” Trump said.

“One day we will be standing up here and be saying, ‘Well, we won.’

As the market bulls continue to battle it out, it is assessed the market bears will continue to attempt to try and find a near-term bottom which now may potentially hold from $24.90-00. Reassess from there.

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