WTI Crude Oil Strengthens on Hopes of Supply Cut Extension by OPEC+
Arslan Butt • 1 min read
On Thursday, WTI crude oil prices are climbing higher in anticipation that leading oil producers could defer their plans to increase supply at the end of this year in the wake of the recent resurgence in cases across the world. At the time of writing, WTI crude oil is trading at around $41.54 per barrel.
Crude oil prices received a boost due to comments from the Algerian energy minister about how the OPEC and its allies could consider extending deeper production curbs of 7.7 million bpd into next year. The OPEC+ was planning to increase crude supply by 2 million bpd starting January 2021, but could be pressured to delaying this as the second wave of the pandemic grips leading energy consumers, including Europe and the US.
So far this week, WTI crude oil has already clocked in over 12% of gains over reports of a promising COVID-19 vaccine by Pfizer. The news, which broke earlier this week, drove the risk sentiment of markets higher amid hopes that it could propel economic recovery as well as an improvement in oil demand.
With the recent spike in cases, however, worries about weakness in oil demand continue to weigh on markets. According to the OPEC, the rebound in oil demand could be slower than previously forecast, as a result of the rising number of fresh cases being reported across parts of Europe, US and Latin America.