Tullow Oil share price crashes ahead of full-year results as oil prices collapse
The UK-based oil and gas company has seen its shares fall a further 30% on Monday, with the stock in freefall as oil prices collapse.
Tullow Oil closed 30% lower on Monday, with the stock capable of falling even further this week as oil prices collapsed.
Brent crude fell more than 22% to $34.98 a barrel on Monday, while the US West Texas Intermediate (WTI) tumbled 23% to $31.70 – the worst one-day drop in 30 years.
The sharp decline in oil prices was driven by Saudi Arabia’s decision to start a price war in response to Russia failing to support further oil production cuts to help support the market.
Tullow Oil closed at 16p a share on Monday.
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Oil price collapse prompts fall in global equities
Tullow Oil’s larger rivals like BP and Royal Dutch Shell saw their shares suffer too, with the pair closing 19% lower on Monday.
The collapse in oil prices, prompted yet another major sell-off in global equities, with the FTSE 100 closing 500 points lower, representing a 7% decline. US stocks also took a tumble, with the S&P 500 losing 231 points, while the Dow Jones is down more than 2000 points.
Tullow Oil: technical analysis
The only chart of use for Tullow Oil at present is the monthly one, according to Chris Beauchamp, chief market analyst at IG.
Given the scale of declines it is hard to suggest where the price may find support. For now, it has found a low at 10p, but this all-time low may not hold.
Possible trendline resistance may be found around 35p, while in the near-term a move back above 18p (an 80% rally from the current level!) would begin to close some of the gap down seen on 9 March.
You can go long or short Tullow Oil with IG using derivatives like CFDs and spread bets.
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