- WTI recovers almost 4% on Thursday after the OPEC + meeting.
- OPEC + agreed to a gradual increase in oil production in May and June.
- The severe outlook on global oil demand from OPEC + limits gains.
The WTI (NYMEX futures) experienced a volatile week before the oil production policy decision of OPEC and its allies (OPEC +) revived optimism.
OPEC + reached an agreement to gradually ease production cuts, increasing production by 350,000 barrels per day (bpd) in May, 350,000 bpd in June and 400,000 bpd in July.
Black gold rose as much as 4% on Thursday, like a positive response to the outcome of the OPEC + meeting. The sell off of the US dollarDriven by falling Treasury yields, it also helped boost dollar-denominated oil prices.
However, US oil closed the week at $ 61.30, an increase of just 1%, as the new wave of the coronavirus and new blockages around the world cast a dark cloud over the global economic recovery.
Besides, the OPEC + downward revision of world oil demand forecast for this year at 300,000 bpd it also limited the rise of the barrel of WTI. Saudi Energy Minister Prince Abdulaziz bin Salman said the market recovery was “far from complete.”
Meanwhile, the number of active oil rigs in the US rose to 337 from 324 last week, which could have contributed to the decline in oil prices.
WTI technical levels
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