In the last few days the oil price has suffered, with 4 consecutive trading sessions in red as investors are seeing growing chances – again – of oversupply for the next few months, particularly with US inventories rising earlier this week. Moreover, there is some anxiety for the possible impact from Chinese Coronavirus, even if at this stage we cannot understand how this fear is justified and how it will impact on oil demand.
Technically, the fall below $58 can be seen as a negative signal, with price now finding a support zone at $55 and is trying to rebound – without a lot of strength – after a negative week.
