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.

Omkar Godbole FXStreet Contributor

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

WTI

Overview
Today last price	30.80
Today Daily Change	-1.95
Today Daily Change %	-5.83
Today daily open	33.44

Trends
Daily SMA20	47.03
Daily SMA50	52.25
Daily SMA100	55.14
Daily SMA200	55.43

Levels
Previous Daily High	36.64
Previous Daily Low	32.89
Previous Weekly High	48.74
Previous Weekly Low	41.22
Previous Monthly High	54.69
Previous Monthly Low	43.95
Daily Fibonacci 38.2%	34.33
Daily Fibonacci 61.8%	35.21
Daily Pivot Point S1	32.01
Daily Pivot Point S2	30.58
Daily Pivot Point S3	28.26
Daily Pivot Point R1	35.76
Daily Pivot Point R2	38.08
Daily Pivot Point R3	39.51

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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