WTI Crude Oil Waits For OPEC+ to Extend Deeper Supply Cuts

WTI crude oil is trading somewhat cautious, with prices slipping lower, in anticipation of the OPEC+ meeting as traders hope for extension

WTI Crude Oil Waits For OPEC+ to Extend Deeper Supply Cuts

At the start of a fresh trading week, WTI crude oil is trading somewhat cautious, with prices slipping lower, in anticipation of the OPEC+ meeting as traders hope for extension of deeper supply cuts. At the time of writing. WTI crude oil is trading at around $44.93 per barrel.

Despite the wait and watch approach in early trading on Monday, crude oil prices are set to post a gain of over 20% so far this month – marking the highest increase in prices seen since May. Oil markets started trading optimistic a couple of weeks ago over reports from pharmaceutical companies announcing effective vaccines against COVID-19.

As the successful rollout of vaccines could take several months, it will be some time before this boosts a recovery in oil demand and the global economy as well. Meanwhile, traders are eagerly waiting for the leading oil producing nations to take a call on extending their deeper supply cuts beyond the end of this year to offset weakness in oil demand.

A few months ago, OPEC and its allies had agreed to cut oil production by 5.5 million bpd until the end of 2020 and then extend production by 2 million bpd starting 2021. The OPEC+ meeting will conclude on Tuesday, following which an optimistic decision could send crude oil prices higher.

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.

Related Articles

Comments

0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

HFM

Doo Prime

XM

Best Forex Brokers