US crude oil prices have returned to the 13-month lows seen earlier this month and have wilted below the uptrend from December 2018 on their monthly chart. Oil is very likely to stay under fundamental pressure as long as COVID-19 continues to spread. The spread of the virus to several other countries has reignited fears, causing global economic slowdown while OPEC+ seems reluctant to increase production cuts.
Iran, Italy and South Korea has also been hit. The number of cases in South Korea has doubled in 1,000 overnight, resulting in CDC (The Centers for Disease Control and Prevention) to issue a "level 3" advisory, which warns to "avoid nonessential travel" to the East Asian country on Monday. In 2019, South Korea itself has purchased approximately 375,000 bpd from the United States, and this emerges Korea as one of the larger buyers; which is detrimental to oil prices with the spread of the virus.
Adding on, ExxonMobil hits 15-year low. We saw shares tumbling to their lowest level in the span on 15 years on Monday, falling below $57. It is reported that CEO Darren Woods will be scheduled to present their 'long-term strategic plan' to investors.
My thoughts?
Recovery will be slow, but will be good to enter a 'buy' position when oil hits $49. My prediction is it should hit $51, but let's see what the EIA report has to say in a bit.
Iran, Italy and South Korea has also been hit. The number of cases in South Korea has doubled in 1,000 overnight, resulting in CDC (The Centers for Disease Control and Prevention) to issue a "level 3" advisory, which warns to "avoid nonessential travel" to the East Asian country on Monday. In 2019, South Korea itself has purchased approximately 375,000 bpd from the United States, and this emerges Korea as one of the larger buyers; which is detrimental to oil prices with the spread of the virus.
Adding on, ExxonMobil hits 15-year low. We saw shares tumbling to their lowest level in the span on 15 years on Monday, falling below $57. It is reported that CEO Darren Woods will be scheduled to present their 'long-term strategic plan' to investors.
My thoughts?
Recovery will be slow, but will be good to enter a 'buy' position when oil hits $49. My prediction is it should hit $51, but let's see what the EIA report has to say in a bit.