Oil: History predicts a rapid return

The collapse of the price of crude oil over the past five weeks has been eye-watering in its speed but otherwise unremarkable in a commodity market long given to violent price movement, FXStreet’s analyst Joseph Trevisani briefs.

Key quotes

“Oil markets are terrified that the worldwide Coronavirus pandemic will plunge the global economy into recession, instigating a demand shock of historic proportions.”

“For a global economy facing the most rapid recession in history the oil price decline may help cushion the blow.”

“Despite the recession fears coursing through the markets and the yet unknown climax of the Coronavirus crisis, we can be sure and price history tells us that oil will not stay at its current level for very long.”