WTI extends its losses to near $78.10 despite OPEC+ extension of oil output cuts

West Texas Intermediate (WTI) oil prices continue to decline for the second consecutive session, with prices hovering near $78.20 per barrel on Tuesday. Despite efforts by OPEC+ countries, including Russia, to implement voluntary oil output cuts, Crude oil prices are facing downward pressure.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies (OPEC+) have agreed to extend voluntary oil output cuts totaling 2.2 million barrels per day (bpd) into the second quarter. Saudi Arabia has announced its intention to prolong its voluntary 1 million barrels per day output cut. Russia has also committed to reducing its oil output and exports by an additional 471,000 bpd. Additionally, Iraq and the UAE have agreed to continue reducing their output by 220,000 bpd and 163,000 bpd, respectively.

Hamas and Egyptian mediators continue discussions in Cairo aimed at securing a ceasefire in Gaza. Despite pressure from Washington for a truce, Israel has opted not to send a delegation. According to Reuters, Israel's decision stems from Hamas' failure to provide a list of hostages taken on October 7 who are still alive.

Additionally, Houthi Telecommunications Minister Misfer Al-Numair stated on Monday that ships must acquire permission from the Houthi-controlled Maritime Affairs Authority before entering Yemeni waters.

China has pledged to revamp its economy amidst sluggish growth since the COVID-19 pandemic. The nation vows to "transform" its economic development model and address industrial overcapacity. Setting an economic growth target for 2024 at around 5%, akin to last year's objective, aligns with analysts' projections. Achieving this target is anticipated to bolster fuel consumption by the world's largest Crude importer, thereby supporting Crude oil prices.