WTI Crude Oil Exhibits Cautious Optimism Ahead of OPEC+ Meeting
Early on Thursday, WTI crude oil is trading bullish and recovering some of the losses incurred over the previous session as markets eagerly look forward to the OPEC+ to announce an extension of deeper production curbs at their upcoming meeting later in the day. At the time of writing, WTI crude oil is trading at around $59.45 per barrel.
WTI crude oil lost around 2.3% of its value on Wednesday despite the EIA reporting an unexpected drop in US crude inventories over the past week. According to the EIA, crude stockpiles in the US declined by 900k barrels against economists’ expectations for a build by 100k barrels instead. However, markets were wary about the spike in cases across several parts of the world and its possible impact on oil demand.
Crude oil prices came under pressure during the previous session after OPEC and its allies reduced their growth forecasts for oil demand this year by 300k bpd in the face of the continuing coronavirus crisis. In addition, the Joint Technical Committee shared no formal recommendation toward extending supply cuts on Wednesday.
As of now, the leading oil producing nations of the world have curbed crude production by a little over 7 million bpd, and Saudi Arabia has implemented an additional supply cut of 1 million bpd above this level through this month. In the wake of the latest wave of the pandemic sweeping across Europe, expectations for the group to extend the deeper cuts for a longer period of time are on the rise, offering some support to oil prices for now.
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