Oil prices remain in red on China virus spreading fears and rise of US crude stocks
WTI oil extends weakness on Thursday after being hit by unexpected build in US crude stocks on Wednesday that adds to negative impact from China virus spreading fears.
The contract holds in red for the second day and is on track to fully retrace brief recovery ($52.14/$54.36) which started from new multi-month low on Monday.
Upticks provided better opportunity to re-enter larger bearish market, as technical studies are negative and sentiment continues to weaken on concerns about virus spreading impact on global demand.
However, extended consolidation before bears resume cannot be ruled out, as daily indicators are oversold, but lacking clearer signal for now.
Res: 53.21; 54.34; 55.00; 55.38
Sup: 52.14; 51.40; 50.91; 51.49