Mar 24, 2020
Oil At An 18-Year Low
. The oil is currently at an 18-year low. The very weak demand is due to a global shutdown of factories and people that ordered to stay at home. On the other hand, oversupply and higher production levels are also responsible for the big drop of -63.2% in prices of oil since the beginning of the year.
The coronavirus outbreak together with the oil war between Saudi Arabia and Russia changed the global supply and demand and escalated the biggest crisis in the oil industry. Texas oil producers were considering coordinating production cuts with OPEC, but this proposal failed. The result was that Oil slid toward the lowest level since 2003. However, historically $20 is a strong support level and from a technical point of view, it might correct to the upside.
Japan’s share index Nikkei climbed 7% today supported by hopes of buying shares by the Bank of Japan (BOJ) and public pension funds. This is the biggest daily rise for the Nikkei since November 2016.
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