Oil Attention! 4-Year Low due to price war and fears
Oil prices fell in the Asian session on Wednesday, trading around the four-year low. WTI is trading below $27 level while BRENT is trading below $30. Investors are still worried about the global outbreaks of the coronavirus, making a severe impact on global economic performance and the demand for energy.
Overall risk appetite remains extremely weak. As the global pandemic is not likely to be under control in the near short term, the fears just hit the oil market continually. Furthermore, the price war between the major producers Russia and Saudi Arabia would be a big big negative factor. Some analysis believe that, if this fundamental does not change, oil price will fall to $20-$25 level, while some even expect that the WTI may reach $13-$19.