On Tuesday, WTI Crude prices ended higher by 0.92 percent to close at $47.2 per barrel over after the Dollar declined making Crude cheaper for other currency holders. Prices were further supported on expectations that the OPEC+ would further trim their output to counter the slumping demand due to the coronavirus outbreak in the major Crude consumer, China. OPEC+ plans to meet in Vienna on 5th -6 th March 2020. The OPEC+ might further trim their output by 1 million barrels per day in addition to the 2.1 million bpd in current output cuts. Possible supply curbs arising from major exporting countries might support Crude.Expectation of aggressive output cuts by OPEC amid stimulus measures by various central banks might support Crude. On the MCX, oil prices are expected to trade higher today.
On Thursday, WTI Crude prices ended lower by 1.88 percent to close at $45.9 per barrel as concerns over weakening of demand for crude around the globe due to the deadly breakout pushed the prices lower. About 98000 people are infected by the deadly virus breakout which has spread out to over 60 nations. Worries of global recession dampened the demand prospects for Crude and pressurized the prices. Moreover, Saudi and other OPEC members are having a tough time winning Russia’s and Kazakhstan’s (members of the OPEC+) support for the additional output cuts to stabilize Crude prices which tumbled due to the Coronavirus breakout in China.
The Organization of the Petroleum Exporting Countries (OPEC) stated that they will trim their output by an extra 1.5 million barrels per day (bpd) in total until the end of 2020. However, weaker demand prospects might over power and push the prices lower. On the MCX, oil prices are expected to trade higher today.