WTI Crude Oil Prices Rise as OPEC Hints at More Production Cuts
Arslan Butt • 1 min read
WTI crude oil prices are edging higher early on Friday after OPEC hinted at looking into more production cuts in the face of weakening demand. At the time of writing, WTI crude oil is trading at around $53.79 per barrel.
On Thursday, OPEC’s secretary general remarked that OPEC and allies would explore the possibility of imposing further curbs on crude production during their December meeting. This decision comes in the wake of lower forecasts for global economic growth and oil demand for 2020.
OPEC+ members had decided to cut crude production by 1.2 million bpd earlier this year. These production cuts are expected to continue till March 2020. OPEC+ nations are scheduled to meet on December 5-6 for their next policy meeting, where it looking increasingly likely that they could decide on additional production curbs to offset weaker demand for oil in global markets.
After days of trading bearish over uncertainties surrounding the US-China trade war, Brexit, and slowing economic growth, these comments helped crude oil prices climb higher during the previous session. According to the revised forecasts by OPEC, global oil demand growth is expected to touch 0.98 million bpd while 2020’s forecast remains 1.08 million bpd.