Crude oil prices fell sharply on Monday as price nears the $50.00 level. The declines came as the impact of the Coronavirus outbreak intensifies.
China’s demand for crude oil is forecast to fall by 20%, leading the way to a slump in oil prices. Saudi Arabia is reportedly mulling over the option to cut oil production in response.
WTI Crude Oil Could Stabilize at $50
The steady declines in crude oil prices could halt once it hits the psychological level of $50.00 a barrel. We expect price action to stabilize a bit.
In terms of a correction, the falling trend line will need to be broken to confirm any upside in prices. With the key price level of $51.00, oil prices could face resistance on any rebound.
