WTI Crude Oil Prices Rise as Markets Wait For OPEC+ Meeting
WTI crude oil is starting the fresh week on an optimistic note, climbing higher over expectations that OPEC and its allies could extend deeper supply cuts beyond the end of this year due to the continued weakness in oil demand. At the time of writing, WTI crude oil is trading at around $40.63 per barrel.
Crude oil ended the previous week on a bullish note, with US oil prices having strengthened by over 8% amid hopes for a vaccine against COVID-19 releasing soon. Traders have also been increasingly hopeful that OPEC+ countries could decide to put off their plans to increase crude production due to the second wave of the coronavirus pandemic currently underway in most parts of the world.
As per their present agreement, OPEC+ nations have been cutting oil supply by around 7.7 million bpd, which is expected to end by December 31, 2020. Oil production was expected to rise by 2 million bpd, bringing the deeper curbs to an end, by the beginning of next year. OPEC and its allies are due to meet this week, and markets are widely anticipating that they could take a call to prolong the deeper cuts because of the fresh lockdowns being imposed across parts of Europe.
WTI crude oil prices, however, have come under pressure due to the surge in production by Libya after it came out of several months of blockade. So far, oil production has already exceeded 1.2 million bpd, which is offsetting some of the impact of OPEC+ cuts even as oil demand remains weak around the world.
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