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WTI Crude Oil Dips as OPEC+ Meeting Gets Delayed

WTI Crude Oil Dips as OPEC+ Meeting Gets Delayed

Posted Tuesday, December 1, 2020 by
Arslan Butt • 1 min read

On Tuesday, WTI crude oil prices are weakening over worries about whether OPEC and its allies would extend the deeper production curbs after they delayed their discussions on next year’s output policy. At the time of writing, WTI crude oil is trading at around $44.99 per barrel.

Over the previous session, WTI crude oil prices fell by around 0.4% as markets turned their focus on the OPEC+ meeting for clues on extension of deeper supply cuts. In the wake of the second wave of the coronavirus pandemic further impacting oil demand, expectations are high that OPEC and allies could continue to cut crude production by 5.5 million bpd beyond December 2020 for at least another three months.

However, there is considerable uncertainty on whether the oil producing leaders would agree for this after crude oil prices strengthened over recent sessions on the back of vaccine optimism. Promising reports about development of COVID-19 vaccines by three pharmaceutical companies so far have helped crude oil strengthen by 27% through November.

The latest OPEC+ meeting, which was due to be held on November 30 and December 1, has been delayed until Thursday as members try to agree on the amount of oil to be produced when demand remains weak due to the pandemic and ensuing lockdowns. According to reports on Reuters, reaching a consensus has proved challenging as the UAE insists on better compliance with existing curbs by nations before discussing extension of supply cuts any further.

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