WTI Crude Oil Holds Above $30 Over Hopes for Demand Improving
Arslan Butt • 1 min read
On Tuesday, WTI crude oil prices are holding above $30 in early Asian session over encouraging reports about economies reopening even as leading oil producers curb production to balance the markets. At the time of writing, WTI crude oil is trading at around $31.35 per barrel.
Even though the June WTI contract is set to expire today, markets are feeling confident that there would not be a repeat of last month when prices crashed below zero for the first time on record. Demand for crude oil is expected to climb higher in the coming weeks as more countries ease lockdown restrictions and resume economic activity.
Meanwhile, OPEC+ has implemented deeper production cuts since the beginning of this month, helping stabilize oil markets in the face of falling demand. In addition, countries like Saudi Arabia and Kuwait have confirmed their interest in implementing additional supply cuts next month.
Emerging reports that offer some hope about the development of a vaccine against the coronavirus have also helped boost the risk appetite in global markets, and are supporting the rise in crude oil prices for now. Analysts expect US oil to touch $35 per barrel in the near future if the positive sentiment continues in financial markets.