WTI Crude Oil Set for Third Consecutive Weekly Gain
Arslan Butt • 1 min read
WTI crude oil is exhibiting mixed trading early on Friday after climbing higher over the previous session after the IEA forecast a reduction in crude stockpiles globally by H2 2020 as economies start reopening. At the time of writing, WTI crude oil is trading at around $28.04 per barrel.
The IEA expects crude inventories to decline by 5.5 million bpd during the second half of this year. With leading oil producers planning to implement additional supply cuts, crude stockpiles could continue to decline even as demand picks up in the coming months.
So far this week, WTI crude oil is set to post a gain of over 10%, marking the third consecutive weekly gain in prices over rising optimism about resumption of economic activity across some countries even as OPEC+ increases production cuts. On Thursday alone, US oil prices registered a 9% gain.
Oil markets have been buoyed by expectations of a pick-up in oil demand as economies begin to ease restrictions and restart activity even as leading oil producers commit to cutting supply in the face of weak demand lately. However, there is an air of caution among oil traders over emerging reports about a second wave of infections in countries that have recently resumed economic activity.