West Texas Intermediate (WTI), the New York-traded benchmark for U.S. crude prices, ran into heavy bearish weather on Friday and plummeted -26% from an intraday high at $28.49 to $21.05 per barrel this morning.
Rejecting the resistance at $28.60-85 once again shifts the attention back to the key support region which was posted the prior week when U.S. West Texas Intermediate crude posted its worst week since 1991 after striking an intraday low at $20.45, last recorded back in 2002.
News sources have reported that U.S. President Trump is facing increasing calls from some U.S. senators and members of Congress to pressure Saudi Arabia into ending the oil price war.
The oil market has had to contend with the twin shocks of the demand destruction caused by the coronavirus pandemic and the unexpected oil price war that erupted between producers Russia and Saudi Arabia earlier this month.
As the coronavirus disrupts business, travel and daily life, many oil companies have rushed to cut spending, elsewhere, reports say some producers have already begun laying off employees.
From the technical outlay, due to Friday’s tumble, the bulls must now defend the broader support remains from $16.00-$19.00 (on the wide).