Thursday, February 22, 2024
HomeCommodity NewsOil Breaks Below $60 as Bears Maul Market; OPEC Showdown Next

Oil Breaks Below $60 as Bears Maul Market; OPEC Showdown Next – The oil bears vs. OPEC showdown is coming down to the wire. And across crude markets the question almost everyone seems to be asking is: can oil prices go any lower?

On Friday, the world’s leading crude benchmarks fell below key support levels they’ve held for the past seven months at least. U.S. West Texas Intermediate fell under the $60 per barrel support it had maintained since March and and U.K. Brent fell below the $70 level it had latched on to since April.

While both were technically in bear markets — having lost more than 20% of their value from four-year highs hit in early October — WTI also showed a year-to-date loss of nearly 0.5% vs. a gain of 27% just five weeks ago. Brent is still up about 4% or more on the year, although there is no telling what could happen if the selloff in oil, now into its 10th day and one of the biggest consecutive slides since the 1980s, continues.

“The collapse in oil prices has turned into a total bear bath,” said Phil Flynn, analyst at Chicago’s Price Futures Group. “The market ignores the bullish fundamentals and only focuses on bearish things that are yet to come.”

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