WTI Crude Oil Set to Post Gains For Third Straight Week

WTI crude oil prices are trading bullish and look all set to post gains for the third consecutive week after leading oil producers pledged

WTI Crude Oil Set to Post Gains For Third Straight Week

Early on Friday, WTI crude oil prices are trading bullish and look all set to post gains for the third consecutive week after leading oil producers pledged to commit to deeper production curbs to offset weakness in oil demand. At the time of writing, WTI crude oil is trading at around $42.91 per barrel.

So far this week, WTI crude oil has posted gains of around 2% even amid uncertainty around economic recovery and pick-up in oil demand globally continue to weigh on the sentiment. During the previous session, US oil prices fell by around 1% following the release of weekly jobless claims figures which came in higher than economists’ forecast.

However, crude oil enjoys support after the OPEC+ meeting in which leading oil producers of the world reiterated their commitment towards ensuring that members cut their oil output in accordance with the agreed upon curbs. Some countries that are part of OPEC+ would have to implement supply cuts as high as 2.31 million bpd to offset oversupply on their part in the past few months.

According to an internal report by OPEC and allies, global oil demand is expected to decline by 9.1 million bpd, higher than their previous forecast by 100k bpd. An extended second wave of coronavirus infections among the leading consumers of oil could cause demand to fall by as much as 11.2 million bpd this year.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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