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.