On March 30, crude oil prices fell to a 17 year low in early trading in Asia, while London crude oil futures fell 7.6% at one time to their lowest level since November 2002. Falling for the fifth straight week, WTI crude oil futures fell below $22 a barrel.

The global aviation industry has been grounded, numerous enterprises and factories have been shut down, and billions of people have been forced stay at home.
Many oil tanks in the market have been filled with crude oil, so traders have to store the surplus oil in idle supertankers. Refineries have also begun to shut down,  even they produced oil, but there is no Buyer.

The fundamental reason for this phenomenon is that the demand for oil consumption has plummet unprecedentedly.
The Economic crisis of 1929, the two oil shocks of the 1970s and the global financial crisis cannot be compared with this one.

The world normally consumes 100 million barrels of oil a day, there is a quarter of the demand lost in just a few weeks during the Coronavirus days.

The collapse in demand has hit oil prices hard.
Oil prices are at a record low. Unless industries and companies start to recover and demand rises, or the rebound of oil prices would till resistant.




In technical analysis,
After the price trend kept for a period of time, the channel shrinks and the price fluctuates in a small range, which is the precursor of a large trend market.
The sudden expansion of the channel is a good time to enter the market.
When the price go up to $23, breakout the resistance line, then we can go long positions.