Bulls are in trouble this Monday as the downward momentum from last week continues in today’s trading. Nothing bat pure bad fundamentals are causing prices to stumble along from nearly $60 to around $53 in trading.
Looking at it, both WTI crude and Brent oil futures are on their sixth consecutive losses as of today. In fact, oil prices are trading at their lowest levels since October of 2019.
West Texas Intermediate futures, or otherwise known as crude oil futures are seen down by 1.64% or about 0.88 points this Monday’s trading. Crude oil barrels now cost around $52.79 in the commodity market.
However, as of Monday last week, prices have gone down for about 10.99% in trading sessions, that bout 6.52 points. Bears are taking control of prices as oil crashed from almost $60.
Meanwhile, Brent oil futures are also falling lower by 2.79% or about 1.69 points this Monday. A barrel of Brent oil now costs around $58.94, slipping lower from its previous close of $60.63.
As for its weekly run, since Monday last week, Brent oil has fallen for approximately 9.74% or 6.36 points.
Sick Prices: Coronavirus Hits
The intensifying situation faced by China, the coronavirus outbreak, has greatly dented oil prices. Investors are worried about the impact of the virus on China, one of the globe’s largest consumer of oil prices.
To make matters even worse, 12 countries outside of mainland China have reported cases of the deadly virus.
According to reports, Australia, France, Canada, Japan, Nepal, the United States, and more countries have recorded new cases.
Demand concerns have heavily weighed on the minds of investors and also raises discussions on whether OPEC will push deeper cuts. Recently, experts are speculating whether OPEC+ will take action to limit the supply of oil in the market considering the dent in demand.
Analysts are forecasting further losses for prices and are advising investors to prepare for the worst.