Crude Oil made, never before seen, historical lows as price not only fell below $0 a barrel
but also went into minus.
The lowest oil prices have ever fallen to in the past was a low of $9.75 which occurred back
in April 1986. Flash forward 34 years and price has easily sliced through that historical support level.
The decline happened as the May oil contracts were expiring. The June contracts went on to open
above $15, but we are continuing to see weakness in price.
As the entire globe is in lockdown, the demand for oil is nowhere close to where it used to be. It may get
there once the lockdown is lifted but as for now, the effects may continue on to be negative for oil.
The positive thing here is that price is now trading back above the previous all-time low at $9.75 which
may continue to act as a strong level of support.
If price can find a base at this level then we should start to see bullish momentum over the long-term.
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
but also went into minus.
The lowest oil prices have ever fallen to in the past was a low of $9.75 which occurred back
in April 1986. Flash forward 34 years and price has easily sliced through that historical support level.
The decline happened as the May oil contracts were expiring. The June contracts went on to open
above $15, but we are continuing to see weakness in price.
As the entire globe is in lockdown, the demand for oil is nowhere close to where it used to be. It may get
there once the lockdown is lifted but as for now, the effects may continue on to be negative for oil.
The positive thing here is that price is now trading back above the previous all-time low at $9.75 which
may continue to act as a strong level of support.
If price can find a base at this level then we should start to see bullish momentum over the long-term.
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
