West Texas Intermediate, the U.S. crude benchmark, hits a 13-month low overnight, and surprisingly shrugs of the positive weekly data on U.S. crude stockpiles, as the coronavirus continues to put uncertainty global markets.
WTI fell to an intraday low of $48.17 per barrel, its first close below the $50 mark since early Feb.
This week’s decline in oil will likely raise questions on how effective an intervention that the OPEC+ alliance of global oil producers could do when it meets in Vienna on March 6.
For more than two weeks now, Saudi Arabia, which dominates OPEC, has been pushing the group to agree to a 600,000-barrels-per-day cut ahead of the meeting to calm the market and stop the price bleeding. But Riyadh’s top ally, Russia, has resisted the plan, saying further discussions were needed on what’s appropriate as an intervention.
From the technical assessment, the break of $49.00 would strengthen the downward bias sub $47.80 and head closer to the region of $45.00-46.00.
Resistance is located at $49.80, then, $51.00-40.