OIL FORECAST: CRUDE CRUMBLES AS CORONAVIRUS FEARS WEIGH ON SENTIMENT, BUT CAN US JOBS DATA STEM THE BLEEDING?The novel coronaviru
OIL FORECAST: CRUDE CRUMBLES AS CORONAVIRUS FEARS WEIGH ON SENTIMENT, BUT CAN US JOBS DATA STEM THE BLEEDING?
- The novel coronavirus outbreak plaguing China has paralyzed danger urge for food and pressured crude oil prices decrease as traders reevaluate expectations for a rebound in international GDP development
- Crude oil now trades in bear market territory owing to the 20% slide from its latest peak owing to the resurgence of volatility
- A freshly inverted US Treasury yield curve displays the broader breakdown in sentiment during the last month, however one other strong NFP report may restore confidence and bolster oil costs
Crude oil plunged a whopping 20% for the reason that begin of the 12 months and formally locations the commodity again in bear market territory. The key selloff in crude oil and motion into safe-haven assets during the last a number of buying and selling days is owed largely to resurfacing global growth fears in gentle of the worldwide public well being disaster that surrounds the novel coronavirus outbreak.
CRUDE OIL PRICE CHART & OIL VOLATILITY INDEX (OVX)
Chart created by @RichDvorakFX with TradingView
Coronavirus issues have introduced commerce, journey and enterprise exercise throughout China to a screeching halt, which has merchants attempting to find out the financial price of the approaching healthcare pandemic. In flip, crude oil worth motion has crumbled alongside demand…