Oil Closes 2020 With Lots of Volatility - Forex News by FX Leaders

Oil Closes 2020 With Lots of Volatility

Posted Wednesday, December 30, 2020 by
Skerdian Meta • 1 min read

2020 has been an extremely volatile year for crude Oil. It started tumbling lower in January due to the geopolitical tensions between US and Iran. Then the coronavirus in China sent it even lower, with US WTI crude breaking below $ 50 in February as the demand from China declined.

Volatility remains high in crude Oil

The decline picked up further pace in March, as crude Oil broke below $ 20 after the virus transferred to Europe, while the big crash came in April, after the Oil dispute between the Saudis and the Russians.  But, the big reversal also came that same month. US WTI crude came back from the abyss at around $ 37 and closed April at $ 20.

The bullish trend has continued since then, although the volatility has also been high. Moving averages have been doing a good job in providing support for Oil, although they have been breached on a regular basis, as the volatility whipsaws have continued. Just a while ago, we saw a 100 pip flash crash, followed by a 100 pip bullish reversal. Now the price is heading for the lows again.This suggests that next year will be volatile for Oil too and we will try to buy pullbacks lower, probably at the 200 SM (purple).

 

 

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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