After Today’s “Crazy” Meltdown, What Is Oil’s Fair Value? Goldman Has The Answer
Black gold suffered a very red day today: the fall in Brent prices to below $74/bbl (-10%) – fears that a new Covid variant would lead to a freeze in oil demand – was the largest daily decline since oil prices collapsed to negative levels last April, exacerbated by usually low trading activity on Black Friday (with similar moves in 2014, 2016 and 2018), the breach of key support levels (50, 100 and 200-day moving averages) as well as likely negative gamma effects.