The barrel has fallen again as there is simply too much oil with a massive oversupply generated from this crisis scenario where demand has fallen, and supply has grown. The strong rebound of Friday, when the price lifted to $28, was over in just a few hours, and oil has fallen again to test the key support level at $21. In the last few hours, we have seen a rebound to $22.50, which can be considered a modest rebound in the current conditions of huge volatility. Technically the holding support zone of $20.50-$21 is now crucial. The first positive signal will only arrive if prices manage to recover and hold on to $24, as the overwhelming sentiment remains very bearish and hugely volatile.
