A day before the OPEC meeting starts, WTI crude oil prices are making gains in anticipation of possible extension and increase of curbs in oil production by the leading oil producing nations of the world. At the time of writing, WTI crude oil is trading at around $56.50 per barrel.

OPEC and its allies are due to meet on December 5-6 in Vienna and are widely expected to announce deeper supply cuts to offset falling demand for oil in global markets. There are also expectations that the current supply cut of 1.2 million bpd could extend beyond the deadline of March 2020 at least until mid of next year.

WTI crude oil prices also received a boost following the release of the API report on Tuesday which revealed a surprising drawdown in US crude stockpiles. According to API, crude stockpiles in the US declined by 3.7 million barrels, a deeper drawdown than economists’ forecast for a 1.7 million barrel decline for the period.

On the demand side, however, crude oil continues to face pressure over fresh escalation in trade tensions between the US and China over the recent law signed by US President Donald Trump. Trump hinted on Tuesday that an end to the trade war may get further delayed beyond next year’s presidential elections in the US.