Oil prices in sideways near-term mode but bias remains with bears
WTI oil price ranged between $28.69 and $30.58 levels but keeping negative tone on growing fears of devastating impact on global oil demand from corona virus outbreak that prompted the shutdown of vast areas in the global economy
Adding to negative signals are plans of Saudi Arabia to boost oil exports to record 10 million barrel a day, as price war between top OPEC oil producers intensifies.
Overall outlook remains bearish with price action to probably fluctuate within the range established after last week’s crash before larger bears fully regain control.
Some help could be expected from cuts in production that global refiners consider as they usually partially shut installations for maintenance in situations strong fall in demand.
Also, crude inventories, (API report is due later today and EIA on Wednesday) are expected to have a minor impact on oil prices.
Res: 30.58; 30.94; 31.30; 31.87
Sup: 29.00; 28.47; 27.67; 26.04