In spite of positive moods on the equity markets, oil prices are dropping hard today. Oil extends downward move launched yesterday as concerns over high infection numbers in Covid drove fears of potential reintroduction of Covid restrictions sooner or later. Today more negative news arrived with Reuters reporting that Saudi Arabia plans to lower export prices for oil deliveries to Asia amid expectations of slower demand and flood of cheap Russian crude.
Oil prices are dropping hard for another day in a row. Brent and WTI are trading over 3.5% each, following around 4% drop yesterday. Taking a look at the WTI chart at D1 (OIL.WTI), we can see that the price broke below the $76.60 swing level today and is moving towards the $72.00 support zone. Overall, prices continue to trade in a downward channel and final technical support can be found at the lower limit, currently in the $69 area.
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Source: xStation5
