At the beginning of a brand new trading week, WTI crude oil prices are trading weaker despite the OPEC and allies confirming massive supply cuts, which have failed to lift the sentiment among oil traders. At the time of writing, WTI crude oil is trading at around $23.93 per barrel.

WTI crude oil gave back last week’s gains even after OPEC+ countries agreed to curtail crude production by an additional 9.7 million bpd during May and June. In its latest statement, OPEC+ is expected to confirm that it will cut down global oil output by as much as 20 million bpd, around 20% of global oil supply, starting May 1.

However, oil markets remain under pressure as the number of coronavirus cases continue to rise, especially in the US and Europe, adding to worries about economic recovery getting further delayed and complicated as a result. According to latest estimates, global oil demand is likely to have reduced by as much as 30 million bpd in the wake of the raging coronavirus pandemic worldwide.

Even though the OPEC statement commits to deeper production cuts by its members, allies and non-members, oil is expected to trade cautiously until markets see countries actually commit to these supply cuts. In case oil producing countries are unable to honour these commitments, analysts expect crude oil prices to fall below $20 per barrel in the coming weeks.