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