WTI clings to gains above $ 45 as markets await OPEC + decision on production strategy

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  • WTI will increase for the second day in a row on Thursday.
  • OPEC + is reportedly looking to increase oil production by 500,000 bpd starting in January.
  • Risk flows help WTI stay in positive territory.

After falling below $ 45 earlier in the day, the barrel of West Texas Intermediate turned north and climbed to a new daily high of $ 45.65. At time of writing, WTI is trading at $ 45.57, up 1.45% on the day.

Eyes on OPEC headlines

Earlier in the day, WTI struggled to gain traction amid a lack of progress regarding an agreement on the production strategy of OPEC and non-OPEC producers, OPEC +, in 2021.

However, recent headlines signaled a compromise and gave crude prices a boost. Citing three sources familiar with the matter, Reuters reported that producers were discussing a renewal of the current oil production cuts in January, followed by a gradual increase of around 500,000 barrels per day. In addition, OPEC + will review the production strategy monthly in 2021.

Meanwhile, market optimism, reflected in modest gains seen in major Wall Street indices, is helping risk-sensitive WTI preserve its bullish momentum. Earlier in the session, the S&P 500 Index touched a new all-time high of 3,681 and was last seen gaining 0.25% on the day at 3,678.

Technical levels

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