WTI Crude Oil Dips as Traders Cautiously Await OPEC+ Meeting
Arslan Butt • 1 min read
On Friday, WTI crude oil prices are recovering after having slid lower and are trading somewhat bearish as markets cautiously await updates from OPEC+ countries on whether they will extend the deeper supply cuts beyond June even as economies begin reopening gradually around the world. At the time of writing, WTI crude oil is trading at around $37.47 per barrel.
Despite the weakness in Friday, WTI crude oil is set to post a weekly gain for the sixth consecutive week amid rising hopes for demand to pick up and economic recovery to begin as countries emerge out of lockdown. In addition, the decision by OPEC and its allies to cut crude supply by nearly 10 million bpd has also helped improve oil prices in recent weeks.
After having originally been scheduled for Thursday, OPEC+ is now expected to hold their meeting online on Saturday, where oil traders are hoping they will take a decision on continuing the deeper supply cuts of 9.7 million bpd beyond the earlier agreed deadline of June. As per the last meeting, OPEC+ was expected to reduce supply cuts to 7.7 million bpd starting from July until December.
According to sources at OPEC, Saudi Arabia and Russia are keen to extend the deeper production cuts into July. So far this week, WTI crude oil prices have gained around 5%, buoyed by optimism about economies reopening after lockdowns.