Oil drops on demand fears.
Oil under bearish pressure today – continuing yesterday’s losses – after the discovery of the new coronavirus strain in the United Kingdom rose concerns over demand recovery. This is due to multiple countries abruptly closing borders to UK – which is leading to immediate drop in demand for cross border freights and airplane flights but this is also pointing toward the likelihood the previous large-scale travel restrictions can be reinstalled in the next couple of months after the new Covid strain will be found in Europe, USA and Asia. The fact that oil prices are not helped by the fact that U.S. Congress approved a $892 billion coronavirus aid package is a bearish signal for oil.
Expect sellers on upward corrections.
Next support to watch – 49.33
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