Saudi Arabia’s Deeper Supply Cuts Support WTI Crude Oil’s Bullishness
WTI crude oil is trading bullish as markets continue to cheer Saudi Arabia's decision to implement deeper supply cuts to offset weakness in
Early on Friday, WTI crude oil is trading bullish as markets continue to cheer Saudi Arabia’s decision to implement deeper supply cuts to offset weakness in demand. At the time of writing, WTI crude oil is trading at around $50.95 per barrel.
WTI oil ended the previous session 0.4% higher while UK Brent rose to the highest level seen since February. So far this week, crude oil had gained around 5% of its value, supported by OPEC+’s commitment to maintain tighter supply even as oil demand remains weak due to the coronavirus pandemic and lockdowns.
The overall risk-on sentiment in global financial markets after the Democrats gaining a majority in the US Senate is also supporting oil prices for now. Traders are optimistic that the victory in Georgia elections will help boost economic recovery in the US, which in turn could spur oil demand.
Gains in crude oil, however, remain limited on the back of surging number of infections and hospitalizations due to coronavirus, as fresh restrictions slow down recovery in the demand for crude oil and fuel across the world. On Thursday, the US reported the highest daily death toll seen so far – over 4,000, even as China saw the highest increase in fresh infections.
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