WTI crude oil prices continued their declining rally for the fourth consecutive and rounded to $23.50 due to broad risk-off market sentiment in the wake of intensifying coronavirus outbreak. At press time, oil prices got some relief from declining prices after a heavy sell-off in the previous session but are still below the $30 level. As of writing, WTI prices are currently trading at 23.58 and are consolidating in the range between 21.78 and 24.45.

However, Wednesday’s announcement by the European Central Bank’s of €750 billion ($821.23 billion) about a Pandemic Emergency Purchase Programme to purchase securities to support European economies also added some recovery in oil prices.

On the other hand, the US Energy Information Administration (EIA) reported that crude inventories rose by two million barrels for the week ended March 13, as per the overnight report. But EIA’s report disagrees with the American Petroleum Institute (API) report of a decrease of 421,000 barrels of crude oil in the US crude oil inventories for the week ending March 13 on Tuesday.

Daily Support and Resistance
S1 9.57
S2 16.61
S3 19.75
Pivot Point 23.66
R1 26.79
R2 30.7
R3 37.74

Technically speaking, WTI crude oil prices are likely to gain support around $20.14 area, but the bearish trend in crude oil doesn’t seem to halt. Overall, the $20/ barrel is a level which Saudia Arabia mentioned and showed a willingness to sell oil at this level. Violation of this level can extend oil prices to $16.60 and $13.75 support levels. While, the closing of the weekly candle above $20, may help drive buying in crude oil. Good luck!