For the 24 hours to 23:00 GMT, Crude Oil declined 1.75% against the USD and closed at USD50.42 per barrel on Friday, amid ongoing worries about the effect of coronavirus on oil demand. Additionally, Baker Hughes reported that the US oil rig count rose by 1 to 676 for the week ended 07 February.
In the Asian session, at GMT0400, the pair is trading at 50.18, with oil trading 0.48% lower against the USD from Friday’s close, on oversupply concerns.
The pair is expected to find support at 49.50, and a fall through could take it to the next support level of 48.83. The pair is expected to find its first resistance at 51.09, and a rise through could take it to the next resistance level of 52.01.
Crude oil is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
