During the Asian session, WTI crude oil prices dropped more than 2% because of the sharp increase in spreading of the coronavirus in different countries beyond China, which drove investors to worry about a hit to demand. The US Crude Oil WTI Futures fell 2.4% to $52.11 by 12:13 AM ET (04:13 GMT).

It should be noted that the demand loss for crude is expected to increase because travel restrictions could increase if the coronavirus outbreak becomes a global threat and not just for China. The number of coronavirus cases in Italy’s Lombardy region surged to 89 on Sunday from 54, leaving the country with 150 confirmed infections, the highest in Europe and almost five times that of Germany, even as the total number of virus cases rose past 77,000 in China.

Meanhile, Iran’s government confirmed 43 cases and eight deaths caused by the coronavirus since last Tuesday, the highest death toll outside of China. The Asian equities flashed red today, with South Korean stocks down more than 3%. Moreover, WTI Crude Oil prices marked a second straight week of gains.

Daily Support and Resistance
S1 51.17
S2 52.19
S3 52.83
Pivot Point 53.21
R1 53.85
R2 54.23
R3 55.24

On the technical side, WTI crude oil prices are heading below the support level of 52.20, violating the upward trendline support. On the lower side, the support can be found around 51 and 50.50. Let’s look for selling trade below 51.75 to target 51 and 50.75. Good luck!