WTI in the red around $45 as OPEC+ seen gradually raising oil output
The producers comprising of the OPEC and its allies (OPEC+) are likely to discuss whether to extend current oil output cuts by three to four months or to gradually hike production from January, as they commence its two-day meeting on Monday, Reuters reports, citing the OPEC+ sources.
Sources said: “OPEC+ is now considering extending the existing cuts of 7.7 million bpd, about 8% of global demand, into the first months of 2021.”
“Today meeting will be difficult, especially if Russia and Kazakhstan didn’t change their position,” a source said.
The informal discussions by the OPEC+ over the weekend failed to materialize, as they failed to find a consensus on oil output policy for 2021.
WTI cautious around $45
With a hike in oil output also being considered as an option in the OPEC+ meeting, the WTI barrel remains under pressure around $45, losing nearly 1.5% on the day.
The black gold is on track to book a 20% monthly gain this month, having rallied to eight-month highs of $46.24 last week.
WTI: Technical levels
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
