Oil prices tumble on US/China data

Oil prices tumbled on Friday after weaker consumer confidence data, tracing another leg lower in Asia after China’s data rose by far less than expected, triggering fears that its recovery is slowing. Virus fears also appear to be weighing on Asian sentiment in general, with markets casting a wary eye towards the evolution of the situation in China, particularly partial port closures.

On Friday, Brent crude fell by 1.30% to $70.20 a barrel, losing another 0.65% to $69.75 today in Asia. WTI sell by 1.40% to $67.95 a barrel on Friday, losing another 0.50% to $67.60 in Asia. Both contracts, in an ominous technical development, closed below their respective 100-DMAs on Friday.

Brent crude has resistance at $70.40 and then $72.00 a barrel, with support at $69.00 and then $67.50 a barrel. WTI has resistance at $68.25, $69.25, and then $70.00 a barrel. Support lies at $66.50 and then $65.00 a barrel. With financial markets now clearly more concerned about global growth and the global recovery this week than last week, oil’s downside remains the more vulnerable. 

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