get_geodata_regions(); WTI Crude Oil Extends Gains Into Second Consecutive Day - Forex News by FX Leaders
WTI crude oil

WTI Crude Oil Extends Gains Into Second Consecutive Day

Posted Tuesday, December 3, 2019 by
Arslan Butt • 1 min read

WTI crude oil prices continue to climb higher into the second day of the week over rising expectations for deeper and extended production cuts to offset weakness in demand. At the time of writing, WTI crude oil is trading around $56.15 per barrel.

Leading oil producer and the de facto head of the OPEC, Saudi Arabia, is reportedly increasing pressure on fellow members and allies to enforce more crude production curbs at the upcoming meeting on December 5-6 in Vienna. Since early this year, OPEC+ nations had agreed to cut crude oil production by 1.2 million bpd to stem the slide in prices.

The existing limits are set to continue till March 2020, although in the face of ongoing global trade tensions, the deadline could very well be extended at least until mid-2020. There is also a rising possibility that the crude production curbs could be increased by another 400,000 bpd to 1.6 million bpd, which has helped crude oil trade bullish.

Crude oil is also trading higher after US President Donald Trump announced tariffs on steel and aluminum imports from Brazil and Argentina. This move is likely to add to the already tense situation around global trade, especially since both South American economies are already under pressure over devaluation of their respective currencies.

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