WTI hovers around $75.00 amid the hope of further OPEC+ cuts

Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around $75.05 so far on Tuesday. A modest uptick in WTI prices is backed by the anticipation that the Organization of the Petroleum Exporting Countries and its allies (OPEC+) will extend the oil production cut in its upcoming meeting on Thursday.

Given the latest oil price drop, analysts anticipate OPEC+ to prolong or deepen production cut into next year. Saudi Arabia, the world's major oil exporter, is expected to extend oil supply cuts by 1 million barrels a day until next year, while Russia might consider further supply cuts with their 300,000 barrels per day. If the OPEC+ members decide to deepen output cuts next year, this could cap the downside of the WTI prices.

Furthermore, China will release the NBS Purchasing Managers Index (PMI) data on Thursday. The better-than-expected data might lift WTI prices as China is the world's largest gold producer and consumer.

On the other hand, the International Energy Agency (IEA) expected a slight surplus in crude oil production in 2024, even if OPEC+ nations extend their cuts into next year. Additionally, strong production by non-OPEC nations such as the US might contributed to pricing pressure.

Moving on, oil traders will focus on the US growth number on Wednesday. The US Gross Domestic Product (GDP) Annualized for the third quarter (Q3) is expected to grow 5% from duck previous reading of 4.9%. On Thursday, the US Personal Consumption Expenditure (PCE) inflation and Chinese NBS PMI data will be released. The outcome of the OPEC+ meeting later this week will be closely watched by traders. These events could significantly impact the USD-denominated WTI price. Oil traders will take cues from the data and find trading opportunities around WTI prices.