The prices of Oil had been teetering on the edge of the territory of bear market in the wake of the rapid rise in the concern that the outbreak of coronavirus may wallop the already struggling economy and rippling in the rest of this world.
Entry in the bear market has been defined by a drop in the price of a minimum of 20% from the high which it had received recently. On this Thursday, the WTI crude oil had been down by a level of 2.4% reaching $52.06 per barrel and leaving the benchmark for Untied States being near the 18% mark off their peak which it had hit recently on the 6th of January at $63.27. Any settlement below the level of $50.62 is going to make it go into the bear market as per the data of the market.
Analysts feel that in the last week the fears with regard to the coronavirus have made the expectations go down after they had risen after the trade deal which took place between China and United States.
Additionally. The signs that the supplies were rising have helped in deliver a punch as the analysts described the present state of oil as a period which is going to destruct the demand.
The analysts feel that the growth in the demand when it comes to United States and China post the trade war has become a pandemic fear. The autos, planes and trains are not moving and it seems that the demand is going to go worse instead of becoming better.
There is a news of over 7700 people being infected by the coronavirus in China.
William holds Master of Business Administration in Finance Degree and leads the team of 7 writers at Packaging Industry Reports. He has deep knowledge of share market and has a long record of being a famous trading consultant in the Business industry from last 10 years. Although William has no family background of business, he demonstrated a keen interest in the business activities from his school days. While he can write news on any topic related to the Business field, he is more focused on the topics that show the impact of advanced technologies in this field. He always keeps himself updated with the latest computer skills.