WTI Crude Oil Gains as Kuwait Looks to Cut Supply to Balance Markets
Arslan Butt • 1 min read
On Friday, WTI crude oil continues to register gains in early trading, boosted by expectations that leading oil producers like Kuwait could implement further cuts in supply soon to offset the falling demand and stabilise markets. At the time of writing, WTI crude oil is trading at around $17.85 per barrel.
In the previous session, WTI crude oil surged 20% higher but is all set to post a weekly loss for the eighth time in the past nine weeks after the crash into negative territory earlier this week. Fears of oversupply amid falling demand on account of the coronavirus pandemic are keeping oil prices under pressure lately.
Economists have already forecast that the global economy is expected to experience the worst downturn ever recorded, significantly worse than the previous recession seen during the 2008-09 financial crisis. Fears of economic recession are also weighing on oil prices, as a slowdown could further reduce the demand for oil even after the pandemic is brought under control in the coming months.
In the wake of the steep decline in demand, leading oil producers under OPEC+ have so far committed to cutting oil production by 9.7 million bpd starting in May. However, this news failed to revive oil markets as demand is expected to come in considerably weaker than the proposed supply cuts.