WTI crude oil prices are edging higher, recovering Thursday’s losses, over expectations of crude producers curbing supply as demand reduces. At the time of writing, WTI crude oil is trading at around $55.45 per barrel.

According to the EIA, a slowdown in demand for oil around the world has caused US refineries to cut crude input by around $247k bpd since the beginning of 2019 when compared with the previous year. Refinery crude consumption has declined by around 56 million barrels from the same period in 2018. This is the first time processing rates have declined since 2011 and is the sharpest fall since the financial recession.

The supply curbs have helped stem crude oil’s decline in the face of growing global trade tensions that were denting the demand for oil and turning it weaker. Oil traders will now turn their focus to Fed Chair Powell’s speech later today at the Jackson Hole symposium for clues on the monetary policy and interest rates. This will offer some guidance on whether the market sentiment could rise or remain under pressure in the near future.