WTI crude oil has started the new week on a bearish note, sliding lower ahead of the upcoming OPEC meeting where leading oil producers could decide on whether to extend production cuts or not. At the time of writing, WTI crude oil is trading at around $35.30 per barrel.

After several weeks of weakness and prices crashing over worries about the fall in demand due to the coronavirus pandemic, May was a strong month for crude oil, seeing prices gain over optimism about economies reopening even as OPEC+ countries committed to deeper supply cuts. However, the mood among oil traders has turned cautious ahead of the next meeting as they wait to see whether these countries will continue to keep supply lower beyond June to offset the falling demand and prices for oil globally.

OPEC+ had agreed to cut oil supply by 9.7 million bpd during May and June as demand was severely affected and prices fell due to the various lockdown measures announced by governments across the world. Saudi Arabia is keen to extend production curbs beyond June but is yet to gain support from Russia on this proposal.

WTI crude oil prices have also come under pressure over increased focus on US-China tensions after China passed the national security bill for Hong Kong. There is also considerable tension among traders because of instances of rioting across major US cities, which is denting the market sentiment all over again.