WTI erodes over 4% amid coronavirus rout, $44.35 closer
- Coronavirus crash spooks recession fears, oil dumped.
- Saudi’s push for a substantial oil output cut ignored.
- Virus updates and US data to hog the limelight.
WTI (oil futures on NYMEX) remains deep in the red zone so far this Friday, having hit the weakest level in 13 months at $44.97 in the last hour.
WTI: Focus on $44.35
Bears now target the January 2019 low of 44.35, as the selling pressure around the black gold remains unabated amid an absolute blood bath across the global equity markets, with investors shunning risk and flocking to safe-havens such as the yen and US Treasuries.
Fears over a potential coronavirus pandemic are intensifying as the infectious disease grips three continents and heightens the risks of a global recession, which will hit the demand for oil.
Amid the virus fears, markets have also ignored the latest Financial Times report that cited Saudi Arabia urges the OPEC+ producers to cut their output by 1 million barrels per day (bpd), in a desperate attempt to stabilize the oil market.
Note that OPEC+ is scheduled to meet on March 5th and 6th in Vienna to discuss the supply cuts.
Looking ahead, oil prices are likely to remain vulnerable if the Wall Street rout deepens heading into the monthly closing on Friday.
WTI technical levels to watch