Markets have calmed down slightly in the aftermath of the sharp sell-off seen on Monday, and this has helped WTI crude oil prices edge higher early in today’s session. At the time of writing, WTI crude oil is trading at around $50.40 per barrel.
Crude oil prices have posted a slight recovery on the back of the improved market sentiment after China reassured the world that it is taking necessary steps towards containing the coronavirus outbreak. Oil prices are also enjoying support in anticipation of the upcoming OPEC meeting over hopes that the leading oil producers of the world could discuss deeper production curbs to offset weakening demand.
OPEC was originally scheduled to meet in March but the group has advanced its meeting to this month over raised fears of coronavirus denting oil demand severely. The extended shutdown across major Chinese cities and regions and the decision to suspend international flights to China by some countries have reduced the demand for oil globally, driving weakness in crude oil prices lately.
Sources have revealed to Reuters that OPEC and its allies are mulling an additional supply cut of around 500k bpd due to the coronavirus impact, which could help support oil prices in the near future.