WTI Price Analysis: Drops by $2.7 in just 60 minutes
|- WTI crude is on the offer, having dropped by more than $2 in just sixty minutes.
- President Trump's speech on Coronavirus failed to quell fears of a prolonged economic slowdown.
- UAE's national oil company is planning to boost output.
West Texas Intermediate oil fell from $33.49 to $30.78 during the 60 minutes to 02:00 GMT as stimulus measures announced by President Trump at 01:00 GMT failed to quell fears of a prolonged coronavirus-led economic slowdown.
At press time, a barrel of WTI is changing hands near $30.80, representing a 6.64% drop on the day.
The black gold could continue to slide during the day ahead on virus scare and Saudi-Russia oil price war, which could end up choking the market on oversupply.
Saudi's Amarco said on Wednesday that it will raise its output capacity to 13 million barrels a day from 12 million. Meanwhile, the United Arab Emirate's Abu Dhabi National Oil Company (ADNOC) said it was ready to boost its oil supplies by around one million barrels per day.
The Kingdom ignited a price war with Russia earlier this week by announcing big cuts to export prices for its Asian customers.
From a technical perspective, WTI is looking south and could revisit sub-$30 levels, having established a bearish lower high at $36.28 on Wednesday.
While the 14-day relative strength index is reporting oversold conditions with a below-30 print, the price chart is showing no signs of seller exhaustion.
The immediate bearish case would weaken if prices rise above $33.49 - the high seen ahead of Trump's speech.
Hourly chart
Trend: Bearish
Technical levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.