Oil prices turned bearish in the beginning of this year, after the geopolitical tensions between US and Iran. OPEC+ decided to cut production be around 10 million barrels per day, but the decline continued until the middle of April, as the coronavirus sent the global economy in a deep recession, which hampered the demand for energy products. Crude Oil has been increasing since then, but OPEC+ has kept the production quotas in place.

That has been the main reason for the bullish trend in WTI Oil, because the global economy is heading down again with the new restrictions in the last couple of months. Although, all member countries are itching to increase production and Russia today confirmed that they will try to increase production next year. This should weigh on Oil prices, but they are holding up well today nonetheless.

Comments by Russian energy minister, Alexander Novak

Following the decision last week, OPEC+ will be meeting more regularly to try and balance market sentiment/price with further relaxing of the output cuts deal in the coming months. So far, oil is taking everything in stride as it is also one of the commodities to benefit from a weaker dollar with price now sitting closer to $46.