Home Forex News Oil Pushes Above $30 For The First Time After Coronavirus-Induced Crash

Oil Pushes Above $30 For The First Time After Coronavirus-Induced Crash

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  • Oil prices up by more than 2% on Monday morning.
  • Prices pass the $30 for the first time in two months.
  • Output cuts fuel oil price rally.

The past couple of weeks have been quite rough for the oil industry, taking a huge hit due to reduced demand for the commodity as a result of the economic impact of the coronavirus. This saw oil prices drop to historic lows, but the industry is off to a good start this week as oil prices rallied above $30. This is the first time that the prices have reached that level in the past 8 weeks.

CRUDEOIL

Time                                      : 18/05/2020

Pivot                                      : $30.26

Technical review                   : Long above $30.46

Target                                   : $30.66, $31.14 and $31.61

Comments                             : Bullish

Last Price                              : $31.57

The price of the commodity at the time of this press was $30.71, with the Pivot at $28.31. Crude oil is expected to experience significant demand at the $27.92, and $32.98 price points. The supply zones are expected at $31.30, $26.24.

Crude oil outlook

The currently bullish crude oil performance is largely attributed to the oil output cuts across the industry in the past few days. These measures were aimed at stabilizing the industry and mopping up the excess supply in the market. It also helps that there has been an uptick in demand, especially this month, thus aiding the rally.

Demand for crude oil is expected to continue improving, especially as governments across the world plan to ease restrictions that previously prevented non-essential businesses from running during the COVID-19 crisis. The measures which were aimed at containing the spread ended up causing an economic decline. Easing some of the restrictions will contribute to better economic performance and, thus, more demand, including the demand for oil.

Despite the expectations of economic recovery and improved oil prices, there are still concerns that oil prices may take another hit. This is because there is still no cure for the coronavirus, and concerns about the second wave of coronavirus infections may encourage governmentS to implement tighter restrictions.

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