WTI Crude Oil Strengthens – OPEC+ to Extend Deeper Supply Cuts?

WTI crude oil is trading bullish amid rising hopes that OPEC and its allies could announce an extension to the deeper supply cuts beyond the

Arslan Butt•Tuesday, November 17, 2020•1 min read

WTI Crude Oil Strengthens - OPEC+ to Extend Deeper Supply Cuts?

Early on Tuesday, WTI crude oil is trading bullish amid rising hopes that OPEC and its allies could announce an extension to the deeper supply cuts beyond the end of this year. At the time of writing, WTI crude oil is trading at around $41.54 per barrel.

OPEC+ countries are scheduled to hold their meeting soon and as a result of the second wave of the coronavirus, especially across Europe and the US, traders are hopeful that the leading oil producing nations could announce an extension of the deeper supply cuts by at least another three months. As per the current arrangement, OPEC+ nations have curtailed crude production by 7.7 million bpd until December 2020, and are expected to increase production by 2 million bpd starting in January 2021.

Crude oil prices are also climbing higher as the market sentiment received a boost from reports about one more promising vaccine against COVID-19. On Monday, Moderna announced that its vaccine is also over 90% effective, like the one by Pfizer, raising hopes that the pandemic could soon be managed, allowing the global economy to recover from the deep downturn.

There are also hopes of a swift recovery in oil demand after the pandemic is brought under control, as China’s crude oil throughput in October surged to an all-time high. This supports optimism that oil demand is on the uptick in the world’s second largest energy consumer, and this could be the case in other countries as well after the pandemic recedes.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Open a FREE Trading Account

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.