WTI Crude Oil Strengthens as OPEC+ Commits to Balancing Production
Early on Friday, WTI crude oil prices are gaining strength over assurances by OPEC countries to ensure that members and allies would adhere to the deeper supply cut commitments, even as signs point to improvement in oil demand. At the time of writing, WTI crude oil is trading at around $39.16 per barrel.
During the previous session, WTI crude oil prices gained around 2% of their value over optimism about Iraq and Kazakhstan committing to compensate for overproduction during May even after agreeing to cut supply. Continued commitment to curb overproduction over the next three months can help stabilize oil markets further even after OPEC+ stops the 9.7 million bpd cut by the end of July.
On Thursday, an OPEC+ panel of the Joint Ministerial Monitoring Committee (JMMC) pushed Iraq and Kazakhstan to ensure better compliance with the agreed upon supply cuts. However, their statement has not mentioned any plans of extending the deeper supply cuts beyond July so far. The next meeting of JMMC is scheduled for July 15.
Crude oil prices received additional support after a recent report on Bloomberg revealed that global oil traders have noted an increase in oil demand during June. However, trading volumes remain thin in early trading on Friday.
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