Crude Oil Futures Analysis- 18Feb2020

Fundamental Analysis
Crude Oil futures traded lower during the Asian session at 51.95, tracking losses in financial markets on concerns over the economic impact of the coronavirus outbreak in China and its effect on oil demand. The number of new coronavirus infections in mainland China fell below 2,000 on Tuesday for the first time since January, Chinese health officials said.

The International Energy Agency said last week that the coronavirus was set to cause oil demand to fall by 435,000 barrels per day year-on-year in the first quarter, in what would be the first quarterly drop since the financial crisis in 2009.

Investors are also anticipating that the OPEC and its allies, including Russia, will approve a proposal to deepen production cuts to support prices. Oil output from Libya has fallen sharply because of a blockade of ports and oil fields by eastern-based commander Khalifa Haftar. Libya’s National Oil Corporation(NOC) said on Monday that oil production was at 135,745 barrels per day Monday, compared with 1.2 million bpd before the stoppage.

Technical Analysis
Indicator – Signal
SMA 20 Sell
SMA 50 Sell
SMA 100 Buy
MACD(12;26;9) Buy
RSI(14) Neutral
Stochastic(9;6;3) Buy

Support & Resistance Table
Resistance 2 52.75 Daily R2
Resistance 1 52.35 Daily R1
Support 1 51.56 Daily S1
Support 2 51.18 Daily S2

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