WTI Crude Oil Prices Rise as Supply Cuts by OPEC+ Support
Arslan Butt • 1 min read
Early on Tuesday, WTI crude oil is trading bullish, as prices climb higher on optimism about economies reopening even as leading oil producers continue with deeper production curbs. At the time of writing, WTI crude oil is trading at around $34.18 per barrel.
Crude oil prices received a boost during the previous session after Russia, one of the leading producers of oil in the world, stated that it had curtailed production to 8.5 million bpd for May and June as part of the agreement reached with OPEC nations recently. In April, OPEC+ had committed to cutting oil supply by an additional 9.7 million bpd starting in May in the wake of falling demand worldwide due to the coronavirus pandemic.
According to Russian energy minister, Alexander Novak, as countries emerge out of lockdown over the coming weeks, oil demand could rise and bring down the current surplus of 7-12 million bpd by as soon as June or July. Meanwhile, OPEC is scheduled to hold its next meeting early next month when supply cuts towards maintaining oil prices could be discussed.
As lockdown restrictions ease, oil demand is expected to improve across several countries worldwide, and help support crude oil prices in the coming weeks. This sentiment has helped oil trade bullish in recent weeks, although they have faced some pressure due to US-China tensions simmering.