WTI Crude Oil Prices Supported by OPEC+ Commitment to Supply Cuts
Arslan Butt • 1 min read
Early on Tuesday, WTI crude oil prices are sliding lower but continue to hold on to gains made during the previous session following OPEC+ confirming that countries were almost completely complying with deeper supply cuts in the wake of fall in demand due to the coronavirus crisis. At the time of writing, WTI crude oil is trading at around $42.66 per barrel.
OPEC+ sources confirmed to Reuters that compliance with the new output cuts stood at around 97%, helping balance oil markets better. In August, OPEC and allies reduced their production curbs from 9.7 million bpd to 7.7 million bpd.
These statements helped WTI crude oil prices gain around 2.1% in the previous session. Iran’s oil minister Bijan Zanganeh also lauded OPEC’s approach towards curbing crude production amid the ongoing crisis, stating that it helped stem the decline in oil prices. According to Zanganeh, “OPEC’s performance has been successful because the price of oil has risen from $16 in May to around $45 and has stabilised.”
Crude oil could see some moves on Wednesday as the next OPEC meeting gets underway. Any changes to its policy regarding supply cuts will remain in focus, although expectations are for leading oil producing nations to maintain current levels of supply curbs.