Oil is down by ~28% today
Oil is a little off the lows for the day but is still sitting under $30 as we look towards European trading. The coronavirus outbreak has brought out the ugly side in OPEC and it is not looking pretty as prices look set for their biggest percentage decline since 1991.
Russia walking away from the OPEC+ alliance is one thing but Saudi Arabia deciding to respond by slashing prices and raising production, ughh. Add to the fact that the market is facing global recession worries on the virus outbreak, it has been a recipe for disaster.
Despite the massive move today, this is no time in the market to try and pick bottoms.
The 2016 low @ $26.05 is the last familiar line of support before talk of $20 starts coming in – not like chatter about that level has not yet begun anyway.