Oil is experiencing a perfect storm in which coronavirus is destroying the demand side, while supply is overwhelmed by the deluge on offer from Saudi Arabia. As a result, the price crashed to an historic low at $20, before attempting a rebound to $23. This scenario will probably not last for long, as for both Russia and Saudi Arabia this oil war is damaging and needs to be resolved.
Meanwhile from a technical perspective, $21.50 provides the main support with the first resistance zone is at $23.40. However, in such a volatile situation we can expect to see frequent price spikes.
