Oil price plunges to around just $25! May bounce back, 'book profit' on every rise, say experts
Oil price today is facing strong resistance at $28 per barrel levels at NYMEX while it has strong support at $20/barrel, say experts.
Coronavirus fear has indirectly sparked the greatest crisis in the oil markets since 2016. Oil price today crashed to the levels of around $25 per barrel. But, according to commodity experts, due to some pro-active approach by the US Federal Reserve and the US administration expected to announce a bailout package to counter Coronavirus, there can be some bounceback in the global oil prices. However, due to the lowering demand, especially in the Asian market after the lockdown in India, China, and gulf countries, the overall trend of oil price is still negative.
Connecting the fall in oil prices with the Coronavirus spread Yan Chong Yaw, Director of Oil Research & Forecast at Refinitiv said, "The impact of COVID-19 on Asia’s oil markets has resulted in crude prices to plunge, falling to under $30 per barrel, amid the biggest daily price rout since the gulf war in 1991. It has also damped global oil demand for 2020 that has set to contract for the first time in over a decade at 99.9 million barrels." Yan said that China’s demand in crude is expected to return slowly despite having seen the worst of Covid-19 outbreak and due to peak maintenance until At least April. "Despite the slump in crude demand and deep cuts to refining capacity, diesel exports out of Asia has hit an all-time high of 10.3 million mt for Feb which is well above the 2019 average of 8.7 million mt/month, encouraged by sudden low price environment, said Yan.
See Zee Business Live TV streaming below:
Expecting some bounceback in oil price Sugandha Sachdeva, Vice President at Religare Commodities said, "The US Fed has shown some pro-active approach to counter Coronavirus spread in the US while the US administration is expected to announce the bailout package to help the US economy come out of the COVID-19 virus impact on it. These measures are expected to bring some bounceback in the oil prices, but, the overall trend of oil price is still weak." Advising commodity investors to book profit on every bounceback she said that crude oil price is facing strong resistance at $28 per barrel levels at NYMEX while it has strong support at $20/barrel.
Oil price today in the global markets have fallen down due to the lockdown in India as Crude Oil makes up for four of the top five imports in India. After the lockdown, its demand is expected to go down as even after the Coronavirus spread, inflows of crude oil to India and Japan were largely steady, despite the on-month dip with falls mainly witnessed from the arrivals of OPEC.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
PM Modi has invested in this post office scheme; know his total worth as per Lok Sabha elections 2024 affidavit
SRH vs GT IPL 2024 Ticket Booking Online: Where and how to buy SRH vs GT tickets online - Check IPL Match 66 ticket price, other details
Top 7 SWP Mutual Funds: Rs 50 lakh investment, Rs 70K monthly pension for 10 years, and Rs 42.30 lakh balance value; know more details
Gold and Silver rate today (May 13, 2024): Precious metal under pressure; yellow metal near Rs 72,400, white metal above Rs 84,600
SIP Returns: How Rs 3,000, 5,000, and Rs 10,000 SIPs can help you build retirement corpus of Rs 1.06 cr, Rs 1.77 cr, and Rs 3.53 cr
TBO Tek IPO Listing LIVE Update: Bumper Debut! Share list at 55% premium - Buy, sell or hold? Check Anil Singhvi's view
12:41 PM IST