Oil attempted to rebound earlier this morning but despite these dramatically volatile times, the price remains drowned by growing expectation of a huge oversupply. The combination of coronavirus and the failed OPEC+ deal is putting the barrel in an extremely dangerous situation.
Technically, the first key resistance area has now been moved to $25, on the peak reached yesterday, while $23-$23.20 is an interesting area of support which is stopping further declines. However, any fall below this zone could generate renewed selling momentum. Many automatic stop losses are now placed below this level as investors are still expecting another return to $20-$21 amid the coronavirus crisis further degenerating and with it an even more severe hit to the long-term demand for oil.
