On Wednesday, WTI crude oil prices soared close to the highest levels seen in nearly three months over reigning hopes that OPEC and allies could agree to extend production cuts at their upcoming meeting this week. At the time of writing, WTI crude oil is trading at around $37.53 per barrel.

Over the past few weeks, crude oil prices have steadily recovered after their crash back in April as a result of economic activity restarting across most countries around the world, which could possibly increase the demand for oil in the coming weeks. In addition, during the month of May, oil prices received additional support from the deeper supply cuts implemented by OPEC+ countries.

According to latest news reports, OPEC+ nations are likely to extend the present supply curbs of 9.7 million bpd beyond the current deadline of June at least until July or August to help balance oil markets and stabilize prices. As per the previous meeting, the leading oil producing nations had agreed to implement these supply cuts till June and then reduce the curbs to 7.7 million bpd for the next six months.

However, even as economies reopen, traders remain cautious about the possibility of a second wave of coronavirus which could dent demand all over again and send prices lower all over again. In the face of this uncertainty, oil producers also want to remain cautious and not boost oil supply in global markets too soon.