Crude Oil Worth Outlook Mired by Coronavirus, International GDP Development

OIL FORECAST: CRUDE OIL PRICE ACTION FIXATED ON GLOBAL GDP GROWTH OUTLOOK IMPACT FROM NOVEL CORONAVIRUS OUTBREAK

• Crude Oil clung onto a essential technical assist stage to document its finest weekly acquire since early December after its current plunge into bear market territory
• WTI and Brent Oil costs might presumably rebound larger if estimates for world GDP development stabilize after slipping in response to the financial toll from the novel coronavirus outbreak
• The likelihood for a broader rebound in crude oil worth motion probably hinges on dealer sentiment and the expansion price in variety of confirmed instances of COVID-19 with most of China on lockdown

The value of crude oil jumped almost 6% off its February lows final week after the commodity discovered technical assist round a multi-year uptrend line and key stage of confluence.

That is subsequent to a significant selloff in oil costs, nonetheless, which pushed WTI right into a bear market to start out the yr with a decline of greater than 20% from its January excessive.

CRUDE OIL PRICE CHART: DAILY TIME FRAME (JUNE 2019 TO FEBRUARY 2020)

Chart created by @RichDvorakFX with TradingView

I famous in a current oil forecast that the main selloff in crude oil and motion into safe-haven assetsis primarily attributable to resurfacing world development fears, which stem overwhelmingly from the unfold of a brand new coronavirus.

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