Oil sinks on Saudi move as equities lose early puff on virus fear

Oil prices tumbled on Wednesday after Saudi Arabia dialled up its price war by hiking production by one million barrels a day, while a rally in equities went into reverse as investors nervously await a US coronavirus relief plan.

Markets had been showing signs of much-needed stability in early trade following two days of wild gyrations, thanks to a pledge by US President Donald Trump to unveil measures to counter the effects of the disease on the world’s biggest economy.

Crude had provided support, rising for a second day after Monday’s meltdown that marked the commodity’s worst selloff since the 1991 Gulf War.