The oil price is continuing its sharp fall on growing oversupply fears amid concern about the spread of the Chinese coronavirus. The barrel is declining for the 6th day in a row and is now approaching the key support level of $51-$51.50, where buyers will try and stop the strength of this bearish movement.
Technically the situation is relatively clear, with a strong bearish movement and – so far – no signals of inversion. As mentioned, the support level of $51-$51.50 will be a significant test for understanding how far this declining momentum could go.
