WTI drops 1.5% even as OPEC+ considers delaying output boost
|- WTI drops as coronavirus resurgence in the US revives lockdown fears.
- OPEC+ is reportedly considering a three to six-month delay to a scheduled output boost.
The US oil prices fell during Friday's Asian trading hours, extending a two-day losing trend as concerns over rising coronavirus infection overshadowed reports of major producers mulling a delay in production ramp-up.
The West Texas Intermediate (WTI) crude, a North American oil benchmark, declined by 1.5% to levels below $40.50, having retreated from $43.06 to $41.12 in the preceding two days.
Risk sentiment weakened as the new coronavirus infections in the US hit record highs for the second straight day on Wednesday. According to The New York Times, at least 142,755 new COVID-19 cases were reported in the US on Wednesday.
Investors feared that authorities would respond to the surge in coronavirus numbers by reimposing the economically-painful lockdown restrictions, causing an April-like glut in the oil market.
As such, the news of OPEC+, a group of major producers led by Russia and Saudi Arabia, planning to push out oil output boost well into the second quarter of 2021, failed to put a bid under the oil.
The output boost was set to take effect on Jan. 1. OPEC+ will meet on Nov. 30 and Dec. 1 to decide and finalize the oil output strategy. Currently, the group is cutting about 7.7 million barrels per day.
Technical levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.