WTI Crude Oil Prices Strengthen as OPEC+ Maintains Supply Cut Commitment

WTI crude oil prices are climbing higher, with traders optimistic about leading oil producing nations' commitment to implement deeper supply

Arslan Butt•Tuesday, February 2, 2021•1 min read

WTI Crude Oil Prices Strengthen as OPEC+ Maintains Supply Cut Commitment

Early on Tuesday, WTI crude oil prices are climbing higher, with traders optimistic about leading oil producing nations’ commitment to implement deeper supply cuts to offset the weakness in demand caused due to the coronavirus pandemic. At the time of writing, WTI crude oil is trading at around $54.04 per barrel.

According to a recent survey by Reuters, crude production by OPEC rose for a seventh consecutive month, but at a smaller than expected pace, rising by 160k bpd to 25.75 million bpd in January. The survey indicates increasing compliance with the crude production curbs decided upon in the group’s recent meetings.

Member of the OPEC+ group, Russia, saw crude production increase during the past month, although the rise was in line with the agreed upon cuts. Meanwhile, crude oil volume produced by Kazakhstan declined in January, helping balance oil markets and lend support to crude oil prices.

WTI crude oil prices are also enjoying support from a blizzard that has affected northeastern US. The extreme cold weather caused by the storm has increased the demand for heating fuel, aiding the bullishness in the commodity.

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

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.