Beyond the trend in the chart:
The fallout between OPEC+ members will hammer the price down.
Saudi Arabia already offers steep discounts to carve more market share and there's even talk about ramping up production to 12m bpd
Russia on the other hand is refusing to cut and prefers to wait until June to say how the world demand changes in response to the COVID
Will it go up? Will it go down? It's anyone's guess really.
The fact that it closed below the trendline is something to keep in mind.
So, if it goes down, here are some key support levels.
The FED has already cut the rates by 50 bps in an "emergency meeting" last week. The US02Y indicates that that was not enough and more cuts are needed. If history is any indication, we're looking at another cut of 50 bps or even 75 bps very soon .
