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.