WTI Crude Oil Prices Trade Higher in Anticipation of OPEC+ Extending Supply Cuts

WTI crude oil prices have climbed higher by more than $1 ahead of the OPEC+ meeting scheduled to take place on 1-2 July.


On Monday, WTI crude oil prices have climbed higher by more than $1 ahead of the OPEC+ meeting scheduled to take place on 1-2 July. At the time of writing, WTI crude oil is trading at around $59.88 per barrel.

Expectations are high that OPEC and its allies will decide to extend supply cuts to support crude oil prices from falling amid potential weakening in demand. The latest supply cuts of 1.2 million bpd have been in place since the beginning of 2019 for a period of six months.

OPEC+ is widely expected to continue with the supply cuts in crude production at least until the end of 2019. A rise in US crude production and weakening global economy have kept oil prices lower, causing OPEC and its allies to curb production since 2017.

According to comments from Saudi Energy Minister, Khalid al-Falih, members of OPEC and its allies could consider extending oil supply cuts for up to nine months. In addition, an improvement in market sentiment after the recent resumption in trade talks between the US and China at the G20 summit are also exerting upward pressure on crude oil prices at the start of a new trading week.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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