WTI struggling to maintain bid on $51 handle
|- WTI struggles to hold the bid as he OPEC talks meet a roadblock.
- Early signs of easing virus fears could imply a less prolonged demand.
The price of a barrel of oil on Thursday was struggling to maintain bid. At the time of writing and into the close, WTI is trading at $51.05 between a range of $50.26 and $52.16. Oil futures ended on a mixed note on Thursday as well while investors looked to the Organization of the Petroleum Exporting Countries to cut production to stem off the risks of a global slowdown and demand due to the coronavirus.
OPEC hopes diminished
The OPEC+ Joint Technical Committee recommended a cut to production of its members and other allies of 600,000 barrels a day, although the committee wasn't the decision-making body and the recommendation must be weighed by OPEC’s oil ministers. Also, Russia turned down the idea proposed which has put a significant dent in the prospects of there being such an accord.
"The size and time-length of the emergency curtailment would remain critical questions for energy market participants — but early signs of easing virus fears could also imply a less prolonged demand hit than initially anticipated. A large OPEC+ emergency curtailment, combined with Libyan and Iraqi disruptions could put a floor in prices,"
analysts at TD Securities explained.
WTI 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.