WTI Crude Oil Holds Gains on Hopes of Possible Deeper Supply Cuts
Arslan Butt • 1 min read
WTI crude oil is trading somewhat steady early on Friday, after strengthening in the previous session over Russian President Vladimir Putin’s comments about implementing deeper supply cuts due to the coronavirus pandemic. At the time of writing, WTI crude oil is trading at around $40.54 per barrel.
WTI crude oil prices gained around 1.5% on Thursday, but is still set to post a weekly gain after three weeks. Putin’s comments on possibly extending crude production curbs because of weak demand due to the pandemic was taken by traders as a sign that Russia could explore additional supply cuts.
For crude oil that has been weighed down by weak demand concerns, the possibility of additional production curbs offered an encouraging sign that oil markets could see some more balancing. This helped prices climb higher on Thursday and continues to support oil for now.
However, gain in crude oil remain under pressure owing to the continued rise in fresh coronavirus cases across Europe and the US. With the onset of winter, there are concerns that the number of infections could climb higher, causing authorities to possibly reintroduce restrictions, which could once again weaken the demand for oil.