Oil price devastated by recent banking crisis.
“Recent banking crisis in the west spurred risk aversion in the market, pushing oil price lower to more than a year low.”
Global oil price collapses, hovering near 15-months low following the collapse of several US banks which spurred concern over economic recession that may spread to other regions. While US and EU government step in to curtail the crisis, market participants remains on the edge while adopting a wait-and-see approach. On the other hand, several media reported that Saudi Arabia and Russia is expected to meet within this week to take further action on bringing support for the global oil prices which experienced sharp depreciation in recent sessions.
USOIL, Daily: Oil price tumbles further after breaching the strong support level at 73.00. While MACD shows persistent bearish momentum, recent price action which shows bullish support from the downside may suggest oil price to experience short-term upward retracement.
Resistance level: 73.00, 81.65
Support level: 66.35, 61.80
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