WTI Crude Oil Still Bearish – All Eyes on OPEC+ Meeting - Forex News by FX Leaders
WTI Crude Oil Still Bearish - All Eyes on OPEC+ Meeting

WTI Crude Oil Still Bearish – All Eyes on OPEC+ Meeting

Posted Wednesday, March 3, 2021 by
Arslan Butt • 1 min read

The bearishness in WTI crude oil continues into Wednesday as markets cautiously await the outcome of the upcoming OPEC+ meeting amid the possibility of increasing supply as the global economy works its way towards recovery. At the time of writing, WTI crude oil is trading at around $59.89 per barrel.

After touching an almost two year high in late February, WTI crude oil prices have weakened by as much as 6% as traders anticipate the leading oil producing nations to increase crude supply. An improvement in outlook for the global economy and oil demand amid the rollout of COVID-19 vaccines and stimulus support has raised concerns that it could spur higher supply as well.

Sources within OPEC+ have already hinted at a possible increase of 500k bpd which would not allow an inventory build. Traders are also waiting to hear if Saudi Arabia would stop the additional 1 million bpd supply cut underway through February and March by next month.

A report on Reuters, however, indicates that OPEC+ countries still remain concerned about the outlook for crude oil, amid uncertainties in markets and the risks of new strains of the coronavirus extending the pandemic despite the rollout of vaccines. Oversupply concerns were further bolstered by the API reporting a build in US crude stockpiles by 7.4 million barrels during the previous week, against economists’ forecast for a drawdown by 928k barrels instead.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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