WTI crude oil has turned bearish after having strengthened over the past few sessions as apprehension seeps in ahead of the OPEC meeting about whether leading oil producing nations will agree to extending deeper supply cuts. At the time of writing, WTI crude oil is trading at around $36.58 per barrel.

According to latest news reports, both Saudi Arabia and Russia are keen to extend the 9.7 million bpd production curbs in crude oil beyond the earlier agreed deadline of June. However, the OPEC+ meeting which was originally scheduled for Thursday has been delayed as some countries have failed to commit to the new targets for deeper cuts.

In case the meeting does not happen, OPEC and its allies will be unable to agree on extending the deeper supply cuts and will have to revert to the previous meeting’s decision to bring down supply cuts to 7.7 million bpd starting in July. This has raised concerns of oversupply in global oil markets even as demand is expected to take longer to recover even as economies begin reopening, weighing on crude oil prices.

WTI crude oil prices also faced some downward pressure following the release of the EIA report during the previous session. Despite crude inventories in the US falling by 2.1 million barrels to 532.3 million barrels during the previous week, the EIA noted that the inventories were around 12% higher than the five-year average for this period of the year, once again heightening worries of oversupply in the face of weak demand.