On February 11, I predicted that Coronavirus would crush oil prices. Prices collapsed on February 20. Today, prices have reversed and WTI price is $2.00 higher on expectations of an OPEC+ production cut and central bank stimulus. Rising and falling sentiment about Coronavirus will be the framework for the rest of 2020. As of last Friday, WTI prices had fallen 27% and Brent had fallen 15% since late December. Prices increased on Monday, March 2 but the oil price is being devalued despite today’s gains. Most of this is because of lower demand expectations and disruption of supply chains from Coronavirus (Covid-19). Hope versus reality will be the manic pattern for 2020. The optimistic rebound of price during the week ending February 14 was short-lived and turned to capitulation the following week. WTI price dropped $8.62 and Brent fell $7.98 (Figure 1). Figure 1 . Hope versus reality will […]