WTI Crude Oil Slides Lower as Markets Worry About OPEC Easing Cuts - Forex News by FX Leaders
WTI Crude Oil Slides Lower as Markets Worry About OPEC Easing Cuts

WTI Crude Oil Slides Lower as Markets Worry About OPEC Easing Cuts

Posted Monday, April 5, 2021 by
Arslan Butt • 1 min read

At the beginning of a brand new trading week, WTI crude oil prices are sliding lower after leading oil producing nations of the world agreed to consider easing their severe curbs starting next month. At the time of writing, WTI crude oil is trading at around $60.89 per barrel.

The past week was a good one for crude oil as WTI prices rose by more than $2 per barrel following the OPEC+ meeting where the nations agreed to keep oil supply controlled in the near future. Oil prices also received a boost after US President Joe Biden unveiled his proposal for increasing investment in infrastructure to help boost the economy further.

OPEC and its allies agreed to ease their severe production cuts by around 350k bpd in May and continue to increase supply in June and July as well. The decision to gradually increase production is weighing on crude oil prices early on Monday, as there remains considerable uncertainty among traders on whether global oil demand will improve correspondingly.

This decision taken in the latest OPEC+ meeting will see production from these countries reduce by around 6.5 million bpd in May from the current level of just under 7 million bpd. In addition, leading oil exporter and the de facto head of OPEC, Saudi Arabia, has also confirmed its plans to stop its additional 1 million bpd cut after July, which will further increase oil supply.

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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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