WTI crude oil prices are starting the brand new week on a bullish note, gaining strength over optimism for the US to soon pass the coronavirus relief bill even as Iraq commits to increasing curbs on crude production. At the time of writing, WTI crude oil is trading at around $41.77 per barrel.
During the previous session, WTI crude oil prices had weakened amid concerns that the next round of fiscal stimulus measures by the Trump administration would get delayed, as talks between Democrats and Republicans failed to make any progress. Despite Friday’s losses, US oil prices gained around 2.4% over the past week.
For now, crude oil prices are enjoying support after Iraq announced supply cuts of 40,000 bpd during August and September to compensate for overproduction in the past three months. With OPEC+ having increased oil production starting this month, the news of Iraq’s deeper production curbs allays some concerns about a supply glut in global oil markets.
WTI crude oil prices were also supported by optimistic comments from Saudi Aramco’s CEO, Amin Nasser, about oil demand picking up across Asia as a result of easing of lockdown restrictions in the near future.