Crude down 2.65%
Another day, another handle.
After breaking below $50 yesterday, oil fell through $49 today and is now down to $48.50, which is the lowest since the brief rout at the end of 2018.
Coronavirus is a massive demand-destruction event as more reports about airline cancellations, travel curbs and quarnatines circulate.
It's an especially dim picture technically because support near $50 held a number of times over the past year and even with OPEC jawboning, it's not holding now. There is barely any support down to the December low at $42.
I've been wondering lately about a sudden stop in the economy where crude stockpiles fill up and the market goes no-bid. I certainly wouldn't want to own an oil futures contract at any time near expiration unless I had a plan to take delivery.
