Crude oil hit by twin shocks of demand and supply, what lies ahead?
April 01, 2020 / 11:41 AM IST
The black gold has been trading higher than 5, 20, 50, 100 and 200 days simple moving averages and exponential moving averages on a daily chart.
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
Faced with a growing supply glut, crude prices have fallen off the cliff. US WTI (West Texas Intermediate) crude hit as low as $20 per barrel intraday on Monday, the lowest in 18 years. The benchmark Brent was no better, flirting with $22 per barrel before climbing to $26.
What’s going on?
The latest weakness can chiefly be attributed to heightened fears that the COVID-19 spread will intensify, potentially extending the lockdowns to months, which could further depress global crude demand.